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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Gokhan Gezmisoglu who wrote (2993)	5/5/1998 6:59:00 PM
From: dunlurkin	Respond to of 4969

Window on Wallstreet Daytrader- (in brief) Intraday charting software, works with DTN satellite feed, BMI satellite or cable, Signal satellite, cable or fm, S&P Comstock 19,200 kbs satellite feed. Charts, quote lists, time & sales window, news, dynamic ranking of most actives, % gainers/ losers, $ gainers/ losers. Smartscan and alerts allow the program to watch stocks for you and alert you to technical criteria as they occur. Wilson Meador Daytrader Sales 800 998 8439 extension 150 wmeador@wallstreet.net wallstreet.net wallstreet.net

To: Gokhan Gezmisoglu who wrote (2993)	5/5/1998 8:40:00 PM
From: steve goldman	Read Replies (2) \| Respond to of 4969

Gokham, good questions...first off, lets look at your original statement, outside of steady flows of orders from retail clients or riskless transactions to work orders to buy or sell which are then simply marketup by an agreed up 'commission', a firm that gets hit with some stock at the 50 bid would do just what you would do, try to kick it out for a small, reasonable profit, if not hit the next bid and take the loss. Secondly, I believe you meant stock xyza because xyz would be a listed nyse or amex stock...lol. Answering your questions, given your hypthetical: Do I take my losses? absolutely, you are a trader. If I hit the bid, I just lost 2K for my firm. The market is closing, do I carry this position overnight? * if you are a trader for a firm and the firms' policy is that no market maker take home any positions and you take them home, find yourself a new job in the morning. As well, note that most mm wont bid for stock they truly dont want. Most orders are clients orders as thats the safest easiest way to work it. Perhaps they just got routed a buy order by EZtrade at 51 and now go to 50 1/2 bid so they can make the 1/2....they arent representing the EZtrade order so if obtained at 1/2, the EZtrade person gets 1/2 pt. improvement. The firm to which EZtrade's order was routed acts as principal, fills at offer either from inventory or fills and then goes out and tries to cover for 1/4, 1/2. At very worse, they turn around and smack the offer for no profit. This is where mmaker will be competiive with inside market. You made note of traders losing for firms. Sure it happens. But consider this: most firms want client orders, considered relatively risk free because at very worse they could do the order agency for no spread, taking "whatever the market bears', even though the execution quality will be less than superb because 25 to 30 seconds, manning rules, were wasted with firm trying to make a spread. If they make the spread, thats great. As well, many market makers will work large orders and agree with the institutions/parties to a particular markup. If the firm decides to let the trader accumulate a position in a stock or let the trader loose with firm capital, yes , the firm can lose. But do this....pull the income statements forsome of the publicly traded brokerage houses and look at how big the trading operations component is. Regards, Steve@yamner.com