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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (7175)	5/5/1999 10:56:00 PM
From: TraderAlan	Read Replies (1) \| Respond to of 12617

Taf, You have to wonder if their business model would work if the average trades per customer dropped significantly. I'm sure many small EDTs stay profitable with relatively few clients because of the huge take on transaction costs. Apart from any devious motive, I suspect many of the former traders/market makers who run these shops made most of their profits on quick scalps. One of reasons I like Mark Seleznov (owner of Trend Trader) so much is that he's a technician. Traders mastering both classic TA and LII are the future big guns. Alan

To: TFF who wrote (7175)	5/5/1999 11:12:00 PM
From: atto	Respond to of 12617

> It's really amazing how these day trading firms have convinced >everyone that to day trade you have to average 20 - 100 trades a day. Let's see... "...but James H. Lee of the Houston day-trading firm Momentum Securities rode it out like a veteran bronco-buster." "...Lee, who also serves as president of the Electronic Traders' Association, said his firm did 27,000 trades Monday, compared with a typical daily average of 17,000." Assuming they charge the standard rate of aprox. $20, that would be... 17,000x20= $340,000 in commissions a day, minus ecn charges, data feeds, etc. Not a bad business to be in. atto