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Trading Lessons Through Pictures


Discussion in Psychology and Money Management

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  #1 (permalink)
 
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 Fat Tails 
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mattz View Post


I agree, but high frequency trading generates a higher amount of commissions. Don't you love commissions?


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 Big Mike 
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Fat Tails View Post
I agree, but high frequency trading generates a higher amount of commissions. Don't you love commissions?

True HFT receives rebates for "providing liquidity" on some exchanges, plus of course when you look at all the memberships and different rule categories for seats on CME you'll see commissions are greatly reduced with volume.

Mike




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 Fat Tails 
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True HFT receives rebates for "providing liquidity" on some exchanges, plus of course when you look at all the memberships and different rule categories for seats on CME you'll see commissions are greatly reduced with volume.

Mike

Very true, but I think that the picture was set up to mirror the behaviour of retail traders.


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 Big Mike 
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Fat Tails View Post
Very true, but I think that the picture was set up to mirror the behaviour of retail traders.

Agree completely, I've been preaching this for a couple years at least now



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 sam028 
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I agree, but high frequency trading generates a higher amount of commissions. Don't you love commissions?

I assume that getting a new customer on board has a fixed initial cost. If the customer's account is blown in a couple of hours, that's not a good deal for @mattz .


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 Fat Tails 
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sam028 View Post
I assume that getting a new customer on board has a fixed initial cost. If the customer's account is blown in a couple of hours, that's not a good deal for @mattz .

Of course it is not, I was just teasing him a bit.

He has access to the data from his customer accounts, and it is probably easy to show that the half-life period of a customer account is inversely correlated to the trade frequency.

He has made an excellent point with a picture, and his statement was honest.


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I assume that getting a new customer on board has a fixed initial cost. If the customer's account is blown in a couple of hours, that's not a good deal for @mattz .

Getting customers on board has no cost except for some paperwork.
but we do want them to succeed and to have a mutually beneficial relationship that could last for years upon years.


Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
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  #10 (permalink)
 
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Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
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