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Non-Tech : CYBERTRADER -- Ignore unavailable to you. Want to Upgrade?

To: William W. Dwyer, Jr. who wrote (1794)	1/30/1999 7:28:00 AM
From: Eric P	Read Replies (1) \| Respond to of 3216

Bill: My experience with the conventional execution systems have been very frustrating as well: SNET preference to the MM as the inside ask/bid will only work once out of ten, and only then if the stock is about to reverse. SNET broadcast orders might work somewhat more often, since they can be seen by all of the market makers in the stock. But if the stock has momentum and is poised to move higher, you will not find any market makers willing to execute against your order. SOES limit order: Forget it. In a fast moving stock, there will always be a queue of orders ahead of you. The market makers at the inside ask will be execute orders as infrequently as once every 17 seconds, until they determine whether the stock will continue to push on higher, or reverse. If the stock begins to weaken and reverse, they will quickly fill all of the remaining orders in the queue, to ensure you do get the losing trade you ordered. Otherwise, if the stock continues to strengthen, they will back away from the inside ask and your order will timeout/cancel. SOES market order: Another good way to get screwed. You will be filled at or near the top of the move for a momentum stock. I'm not smart enough to know what the best solution to this problem is. However, I suspect that finding a way to exclusively use ISLD is the key. This does require you enter stocks sooner and not after strong momentum is in place. However, I believe that this is the trading of the future. The importance of ISLD will only continue to grow, and the less reliance we have on the market makers to fill our orders, the better. Good luck next week, -Eric