Frequent trading is tough for small traders. Heavier trading volume helps you compete, along with proper math models. Assuming you have the models, big-trader packaged securities help accomplish the job.
Furthermore, buying/selling spreads kill you. The average spread on the NYSE’s electronic Arca platform is about 3 cents for larger capitalized stocks and as much as 9 to 10 cents for the smaller caps. You are thus looking for gains in pennies.
This is a tough game for amateurs. Yet, they never stop trying to beat the odds. ( See the Earl J Weinreb NewsHole® comments.)
Friday, September 16, 2011
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