Jump to content

Day Traders Will Have Fun Until They Get Wiped Out


Recommended Posts

Is this statement from the article true?

 

“....Day traders might think that because they’re paying zero commission, their trades are free. But when a day trader places an order, a trading algorithm somewhere quickly figures out that they want to buy or sell, and raises or lowers the price accordingly, so that the day trader gets a less favorable price....”

 

 

Link to comment
2 hours ago, Monobrow said:

Is this statement from the article true?

 

“....Day traders might think that because they’re paying zero commission, their trades are free. But when a day trader places an order, a trading algorithm somewhere quickly figures out that they want to buy or sell, and raises or lowers the price accordingly, so that the day trader gets a less favorable price....”

 

 

Hi, doubt an algorithm could manage that for 150,000 clients simultaneously, i think someone would notice everyone was receiving different prices. 

Link to comment
On 11/07/2020 at 06:57, Monobrow said:

Is this statement from the article true?

 

“....Day traders might think that because they’re paying zero commission, their trades are free. But when a day trader places an order, a trading algorithm somewhere quickly figures out that they want to buy or sell, and raises or lowers the price accordingly, so that the day trader gets a less favorable price....”

 

 

"

That’s because it makes money through a complex practice known as “payment for order flow.” Each time a Robinhood customer trades, Wall Street firms actually buy or sell the shares and determine what price the customer gets. These firms pay Robinhood for the right to do this, because they then engage in a form of arbitrage by trying to buy or sell the stock for a profit over what they give the Robinhood customer.

This practice is not new, and retail brokers such as E-Trade and Schwab also do it. But Robinhood makes significantly more than they do for each stock share and options contract sent to the professional trading firms, the filings show."

https://www.nytimes.com/2020/07/08/technology/robinhood-risky-trading.html

  • Thought provoking 1
Link to comment

Periods of mass unemployment are a great time to be a snake oil salesman (this was true in the 1930s as well, look up Dale Carnegie and the 'law of attraction' sh!te), I'm being bombared by new ads on how to trade and invest every day.  As Caseynotes says, these ads don't seem to be regulated - no warnings about 80% of people losing their shirts, or 'past results do not guarantee future returns' or anything of that sort.

To be honest, if you really want to escape misery and hell - run out in front of an incoming train :P 

Link to comment
3 hours ago, Kodiak said:

"

That’s because it makes money through a complex practice known as “payment for order flow.” Each time a Robinhood customer trades, Wall Street firms actually buy or sell the shares and determine what price the customer gets. These firms pay Robinhood for the right to do this, because they then engage in a form of arbitrage by trying to buy or sell the stock for a profit over what they give the Robinhood customer.

This practice is not new, and retail brokers such as E-Trade and Schwab also do it. But Robinhood makes significantly more than they do for each stock share and options contract sent to the professional trading firms, the filings show."

https://www.nytimes.com/2020/07/08/technology/robinhood-risky-trading.html

 

 

The rich Tory boys in the City (and the cowboys on Wall Street) have a saying, 'Pigs get slaughtered.'

And by 'pigs' they mean retail investors :-)

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Unlike many emerging platforms that are building a reputation, Safe is already a leading provider of smart wallet infrastructure for Ethereum and EVM blockchains and their focus is to transform every Ethereum account into a secure smart account. With over 200 projects already deployed on Safe's standard, including Gnosis Pay and Worldcoin, it boasts a vast ecosystem that enables new applications in DeFi, staking, gaming, and more. Widely used by individuals and organizations for features like gasless transactions, facial recognition logins, Safe is trusted by industry giants like Vitalik Buterin, Punk6529, Shopify, and Reddit for managing their digital assets. I believe with over 8.3 million Safe accounts, 47 million transactions processed, zero critical security incidents since launch in 2018 plus a slated Bitget listing of SAFE token, Safe is setting the industry benchmark for security. Who is/are Safe’s closest competitors?
    • Dow, Nasdaq 100 and Nikkei 225 make headway off recent lows The selling in indices has stopped for now, with major markets higher after finding at least a short-term low last week. Source: Getty Images Written by: Chris Beauchamp | Chief Market Analyst, London   Publication date: Tuesday 23 April 2024 13:38 Dow recovery goes on The index continues its recovery from the lows of last week, and Monday’s session saw it move back above the 100-day simple moving average. The flood of major earnings over the coming two weeks may mean that the index experiences a more volatile period, even if it does continue to rebound. Further gains target 39,000, which provided some resistance earlier in the month, and then on to 40,000. A close back below 38,000 could suggest the price will head back towards 37,500, retesting last week’s low. Source: ProRealTime Nasdaq 100 braces for big tech earnings The pullback in the index paused yesterday, as the price reached 17,000. A small gain helped to suggest that a low may be forming. The big tech earnings that dominate this week and next may mean that the index struggles in the short-term, though with the percentage of index members below their 20-day SMA hitting 5% last week a short-term bounce still seems likely. A close above 17,415 and the 100-day SMA helps to build a short-term bullish view. Sellers will want to see a close back below 17,000, which could then open the way to the January low at 16,177. Source: ProRealTime Nikkei 225 returns to 100-day SMA As with other indices, the Nikkei 225 has seen its pullback pause over the past three sessions. Buyers appeared last week when the index dropped below 37,000, and the index then pushed back to the 100-day SMA. A close above the 100-day SMA would add strength to the bullish view, while the price then targets the early April highs around 39,860. 37,000 continues to hold as support for now, so a break below here is needed to put the bearish view back on track. Source: ProRealTime
×
×
  • Create New...
us