Friday, September 16, 2011

Outsmarting the Other Traders

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.)

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