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Rick,
Seems like about 6 months ago or more that I attended a seminar/demo at the
(then) only SOES trading house in Toronto. I forget their name, but they
were somewhere off Spadina or University.
I found the demo interesting, but then most new things are interesting to
me. What concerned me the most were two things. Firstly, the amount of
capital required to trade stocks effectively on a daytrading basis.
Somewhere in the region of US$70,000-US$100,000 minimum. That's US dollars!
Compare that number with the margin required on futures (or options) for a
daytrader. Secondly, the major thrust of their strategy was to exploit the
fairly wide spreads in the NASDAQ market. Most traders seemed to be looking
to make between a teenie and an 1/8 per trade by standing in front of the
big guys. Whilst this strategy might work for a while, a combination of an
ever expanding pool of SOES traders and lower spreads from the MM's will,
in my opinion, render this form of trading unprofitable in the near future.
Although the demo did mention (very, very briefly) the possibility of
trading using other technical analysis tools, the software at the time
didn't support anything that a serious technician would need.
Caveat emptor.
Andrew
-----Original Message-----
From: Bando57@xxxxxxx [SMTP:Bando57@xxxxxxx]
Sent: Tuesday, November 24, 1998 8:24 PM
To: realtraders@xxxxxxxxxxxxxx
Subject: SOES
I was wondering if any traders had any experience with SOES trading..
A trading room opened up in my city (Toronto) and I was invited down to
take a
look at it...I would be grateful from anyone who has personal insights into
this.
Rick
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