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Agreed. But a marketmaker with order flow is a formidable force
indeed. In fact, my definition of marketmaker absolutely includes
access to order flow. They are generally hedged within a range, and
they have capital, and they can literally fix the prices under certain
circumstances. It takes more than an level 2 and good intentions to
enter that ring with a fighting chance -- IF we're talking about
daytrading. If you want to position trade with a level 2, and you're
not depending on the fractions to survive, then a level two can be
quite entertaining and informative.
A level II by itself might be likened to a pair of binoculars on a
battlefield. The trading account, a bayonette (or better, depending
on size). The marketmakers have tanks, machine guns, night vision,
and are a large, fairly synchronized army.
The only way to win that war is with extreme character (ie some
measure or combination of cleverness, discipline, etc.) and/or Divine
intervention. It certainly doesn't pay to let one's self be deluded
about the chances for survival under such circumstances apart from
those two additional qualifications.
Best,
CW
---RobertBu <Robertbu@xxxxxxxxxxxxx> wrote:
>
> >I can't say that I disagree...Only that I think one of the best ways
> >to make money in the OTC w/ a level II is to be a market maker
>
> The SOES firm I deal with tried being a market maker for KLAC
> a few years back. They lost money. In their analysis, the problem
> was partly that they were not like by other MMs, but mostly
> because they did not have an order flow. I don't think just
> being a MM is enough.
>
> == Rob ==
>
>
>
>
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