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Strategies & Market Trends : After Hours Trading(ECN)-The Coming 24/7 Trading Explosion -- Ignore unavailable to you. Want to Upgrade?

To: brec who wrote (40)	4/9/1999 7:00:00 PM
From: Lola	Read Replies (2) \| Respond to of 314

"What happens when a member doesn't find a matching order on the electronic system that is reasonably near recent transaction prices?" Because the computer weighs the buys and sells against each other after every transaction, the chances of being unable to sell at a reasonable price are much lower than in the MM system. The computer creates a true orderly market in which liquidity is increased, not decreased. Also because people know that a computer cannot manipulate, they do not fear putting in stop loss orders etc for fear of being taken out due to stock manipulation. "I don't see how one can reasonably expect to turn around and sell at the same price what one has just bought. Spreads are inherent in markets." That statement shows that you have been brainwashed into thinking that an immediate decrease in your investment is a necessary part of investing. That is a FALSE idea which has been pounded into the minds of Americans. It is NOT necessary to immediately be in a loss when investing. That is ridiculous. An investor should think that his investment (if a smart one) should INCREASE in value not DECREASE. I cannot understand why you would reasonably expect to immediately be in a loss unless you made a poor choice in picking the stock. Stocks should not be sold retail. The idea is un-American. There is no justifiable reason to have a middle man on a listed stock on a major stock exchange. NONE. I would rather take my chances with a computer than a bunch of manipulative people. Believe me, it is much more fun trading with a computer than a market maker. More profitable too, I know this from experience. I find it difficult to accept some of the statements being made on this board about the need for MMs. The way MMs operate these days does not create orderly markets. Orderly markets do not have such high volatility as is evidenced by many stocks on the Nasdaq. There is truly something evil happening on the Nasdaq. Lola

To: brec who wrote (40)	4/11/1999 4:19:00 AM
From: Savant	Respond to of 314

brec, the way it works in Canada, the investor is the market maker, in a sense. If there are six orders to buy on the bid, and I am one of them first in line, I get filled first if someone sells into the bid. I can at that point turn around and sell it to the person that was second in line on the bid at the same price I paid...less commission of course. With the MM system, unless you have an ECN and level II, you have no idea sometimes how many shares are really at the bid, could be 6 MMs with 100 each and it shows only 100 bid on level I...should be cumulative like Canada in the first place, and in the second, the regular person buying doesn't always get filled if first in line on the bid...saw it happen the other day , a 1000 share order got filled in front of 5 other orders that totaled 2700 that were there first, one of which was for 2,000. That is wrong in my book, but probably legal. In Canada, they are filled in sequence, first come, first served. Regarding customers not knowing about market orders vs limit orders, true, but mostly because the current system didn't want them to know, served their purposes quite well. Easier to horn swaggle an uneducated investor...Hello, I want to buy some XNTH, how much is it? Broker..it's 57$...Okay buy me some...fella never asked how much the b/a was, didn't know there was such a thing..I know people like that now..college educations and all....and in the worst cases, the broker actually paid 55$ or 54$..told the guy if he asked that the market moved down after...right.