Electronic Trading

In the past 20 years US equity markets have evolved dramatically. The two major US markets the NYSE and NASDAQ have moved forward at different paces but pretty much have converged at this point with how they interact with traders. Trades can be executed on either exchange within a blink of an eye by computers and humans alike. For an … Read More

The Stock Market Does Not Exist To Serve The Long Term Investor

I appreciate being invited on to Bloomberg TV Monday to share my thoughts on market regulation and HFT trading. This issue has received a lot of press recently in part thanks to Mark Cuban who has used his notoriety to bring attention to an important issue. I applaud him for using his platform for bringing this issue into focus, first … Read More

Why Am I Getting Stopped Out More? (Part IV)

During Part I, Part II, and Part III of this series we identified a new algo on the desks of more traders that may be causing us to get stopped out more. For Part IV let’s offer some solutions. Some ideas from SMB Readers: Trade instruments wich are more liquid or trade on a higher timeframe. Cheers, Markus This is an … Read More

Why I am Getting Stopped Out More? (Part II)

Yesterday we explained a trading algorithim on more desks that may explain why swing traders, retail traders, long-term investors/traders are getting stopped out more on their positions. Today we will explain another part to the algorithm that eliminates one possible adjustment. So as we discussed, say we are long at 30 with a stop at 29.84. One way to combat the algorithm that is … Read More

Why Am I Getting Stopped Out More?

One of our new trainees noticed with frustration in his voice that he was getting stopped out more in his swing trades.  Adam Grimes and I sat in my office discussing more little trades we were getting stopped out on intraday. I read about this complaint in the blogosphere and all things Twitter. Let me offer a potential reason. So you … Read More

Traders Ask: The Intraday Scalp

Question: My question is how big a move do you typically look for on a fairly quick intraday scalp ? I know we take what the market gives and the skill is to know “when to hold em and when to fold em”..but I wonder what the mindset is. Example: watching LVS pull back to 46.70 today just before 12:00est, … Read More

Inside the World of Prop Trading with The Disciplined Investor

Mike Bellafiore, author of One Good Trade: Inside the Highly Competitive World of Proprietary Trading, was featured on The Disciplined Investor. Mike talks with host, Andrew Horowitz, about the shift to high frequency trading (HFT) in the trading industry and the ways SMB has adapted to combat the adoption of HFT. Andrew does a weekly podcast, which can be found … Read More

Unusual Prices Are A Better Bet In An HFT Dominated Market

I was trading FCX this morning.  I noticed a clear buyer at 60.90 during the Open.  In the late morning the buyer dropped and I got short.  FCX traded down about 30 cents over the next ten minutes.  It then did a bit of a short squeeze up to 61 before trading down to its opening price of 60.20 From … Read More