25 replies to this topic

[dwnowhere1]

Been actively (daily) trading over 35 years.

 

Reasons thinking of quitting:

RIsks have shifted greatly to the Trader. 

Potential for lot manipulation such as:

1)  delaying datafeeds so one is behind the curve,

2)  dropping feeds

3)  not having the staffing to confirm order status if a problem (on either end) arises, which may force one

to hold a losing trade as their position is unknown.

 

Current data suppliers and trade facilitators (such as IB) business model highlights the above.

As long as things work -- no hick ups -- everything works great.

HOWEVER, when there is a hick up -- then if one can't get hold of a real person or get feedback

to confirm their order status risk increases significantly.

Today, I've been holding on line over 1 hour and still NO PICKUP!.

 

Prior to IB, I traded through MFGlobal Z desk.   While everything was still computerized, one

could call the Z desk and in seconds get ones status, and/or place or exit a trade manually.

Edited by dwnowhere1, 08 December 2020 - 01:50 PM.

[12SPX]

Awwwww miss the guys at Global, some got moved over to Rj after the close down but there gone from there too now.  Yes things have gotten more complicated but just keep it simple, sell options and use Interactive for smaller trades maybe......

[dwnowhere1]

Moved to IB after MFGlobal (Corsine) debacle.

If I recall correctly, took about 3 years to get my money back -- which we we're all fortunate we did.

Read recently the CEO of IB is a multi-billionaire.

One would think he would hire enough HELP.

Guess the bottom line is more important as most younger traders don't recognize the inherent risks.

I.e.  Not just trading itself, but most importantly the pitfalls associated with the computer business model to facilitate those trades.

I developed and use my own trading platform, so have mitigated some of the risks but ultimately one must get data and

execute trades through someone else unless one has an exchange seat.

Edited by dwnowhere1, 08 December 2020 - 02:32 PM.

[12SPX]

Ya so remember waking up the morning they closed the accounts and you originally have that feeling of all was lost!  Loved the margin levels they adjusted for us though lol!!  By the time I got my final check I had made it all back lol!!  Was amazing they did get it all back!! 

[dwnowhere1]

 

Was amazing they did get it all back!!

You can say that again.

As far as I know, no one got prosecuted for it.

Lot of finger pointing over who was at fault.

My guess the industry couldn't afford to alienate its customers (WC Fields -- A sucker born every minute), and hence MAY have ponied up some.

IMHO should been a prosecution, but I guess Justice figured if customers got their money back and couldn't ID who was at fault (all top managment IMHO),

then just drop it, which I believe they did.

 

with IB still in queue 2 HOURS and holding, out of curiosity to see if they ever pick up.

Edited by dwnowhere1, 08 December 2020 - 03:04 PM.

[pdx5]

By trading I think you guys are talking about day trading? I never had the talent, or time to day trade.

For 37 years I had high responsibility jobs so no time for ST trading. After I retired at 57 (my goal always was to retire as soon as I can afford it) the best thing I ever did was join Royal Oaks Golf & Country club in WA state. It was the absolute best decision. 

 

Not only my health improved by orders of magnitude, but it was an amazingly beautiful and challenging course I ever played on and I have played every worthwhile public golf courses in Chicago area plus a few private courses in Chicago courtesy of obliging salesmen. Those 15 years at ROCC were easily the best of times in my 80 year life.. The members were great, the food was amazing, the bartenders in men's lounge were always beautiful. Men have a knack for hiring the right people lol. In the meanwhile my input in the stocks has done well with just lazy trading a few times in a year. How lucky can you get. So bored with this covid-19 crap, my cruises are still on hold at 36. Damm I want to make 50 or 60 cruises but all are stopped due to covid. Come on Vaccines!!

[dwnowhere1]

 

By trading I think you guys are talking about day trading?

IMHO every entry trade is a day trade.   It is a function of risk.  If it goes against you initially do you sit and hope it will come back or get out?

[sixpack]

I just started online trading stocks in the last couple of years.  Turns out my two youngest kids got me into it.  Prior to that I have used the same broker for over 25 years.  His company has  been bought and sold numerous times and now is Wells Fargo.  For the futures markets I use him. Not worth getting caught in some bad situation for the small amount of commissions relative to risk.   For stocks forget it.  The commissions eat me alive.  It's criminal to say the least.  I have one stock account with him, mostly out of loyalty because he is fantastic with the futures markets.  I now use Charles Schwab for most stock stuff and I do it all with my phone, usually on my way to work.  I have had only one questionable day since using them.  That big up day last month overloaded their system.  Really was no big deal.  They sent me a notice saying trade confirmations were running late and not to keep placing the same trade.

 

I would be a little apprehensive trading futures without a good broker.  I take a position tell him the goal and say call me if we go here or there.  Then I can decide to add, hedge, or whatever.  You can make or lose a lot of money real fast, and should always have a plan.  Hope has cost me plenty in years past.  I have hope for a lot things, but not when a trade goes against my plan.  I'm out.  

 

 

https://www.bloomber...cklash-is-swift

[dwnowhere1]

sixpack:

The market has been biased Up for some time and may continue for a long time (daChief gets a lot of credit for recognizing one should 'Buy an Hold" since 2009)

With the FED (low interest rates) and pension shifts (401Ks versus Company Pension plan) a lot of small players are now in

the market.  A lot via brokers, but a lot doing their own thing who maybe shouldn't be.

A lot don't recognize a broker is just a middleman. 

He makes his commissions whether you win or loose.

His income comes from the TAKE not from trading.

A broker has no more insight into the market than anyone else.

While you may think you have a personal relationship with him/her, trust me you're just a number which relates to his source of income.

If things go South fast, like 2000 and 2007-2008 all bets are off.

Whether one can react fast enough or even get out - probably most here haven't seen limit downs over multiple days - becomes the question

So if one is biased Long, or biased Short for that matter, one needs to have a Stop point and hope it gets executed at  the Stop price.

Most time one gets their price, but Not always.

Edited by dwnowhere1, 09 December 2020 - 07:04 AM.

[dwnowhere1]

(Above Edited with Following But Changes Not Accepted -- Computer Issue?)

sixpack:

The market has been biased Up for some time and may continue for a long time (daChief gets a lot of credit for recognizing one should 'Buy an Hold" since 2009)

With the FED (low interest rates) and pension shifts (401Ks versus Company Pension plan) a lot of small players are now in

the market.  A lot via brokers, but a lot doing their own thing.

Whether a broker or doing their own thing, maybe they shouldn't be.

A lot don't recognize a broker is just a middleman. 

He makes his commissions whether you win or loose.

His income comes from the TAKE not from trading.

A broker has no more insight into the market than anyone else.

While you may think you have a personal relationship with him/her, trust me you're just a number which relates to his source of income.

The industry has changed a lot since I first started trading.

On SP500 futures, it used to be $500 a point.  Then then dropped to $250 and then $50 in order to bring more small players in and increase their commission TAKE.   We also have had a shift using computers for order execution placement.  While this makes things a lot easier, it has a

number of fail points (cable down, server down, computer down).   It also leaves openings for manipulation (e.g. front running via datafeed delay,

or late order execution).  The biggest hickup, per my post is:

 

If one has a computer problem with a position on, or worse yet sent an order and doesn't know whether it executed or not, and prices are at or near ones stop price, and there is no way to confirm where one is at because the brokers are now ALL computer reliant with little (or maybe no) actual staff,

then one can loose a lot of money depending on ones position size.   I just experienced this, have in the past and discounted it, but it is critical enough

that I am considering quitting trading.   Just because you have a broker, does not mean this situation does NOT apply.  It does unless you're dealing with someone directly who has a seat on the exchange.  Caveat Emptor!

 

If things go South fast, like 2000 and 2007-2008 all bets are off.

Whether one can react fast enough or even get out - probably most here haven't seen limit downs over multiple days - becomes the question

So if one is biased Long, or biased Short for that matter, one needs to have a Stop point and hope it gets executed at  the Stop price.

Most time one gets their price, but Not always.

Edited by dwnowhere1, 09 December 2020 - 07:27 AM.