I just want to say first, thank you, this is a quality post imo, very much appreciated
Originally Posted by ArturiusX
***NEW SECTION***What do Day Traders do?
For the market:
- Adds liquidity. Liquidity is the life blood of the market, it gives people re-assurance that whatever they own at any point can be sold for a value that can be found publicly. To grease the financial gears, day traders provide a service by offering liquidity in exchange for a theoretical premium, helping with the distribution process that is the market.
- Adds balance. Day Traders sift through information and take directonal positions. They weigh in on news, technical indicators, relationships between assets, and take positions in both directions, taking on over-exuberance and helping to bottom tumbling prices.
This part, adds liquidity. A Day Trader can also be removing liquidity if he uses market orders
I mentioned this in the past in some random thread, half of all trades are removing liquidity, the other half adding liquidity, so I wouldn't be suprised if there are day traders out there removing more liquidity than they add. Well, I only use market orders, day trading, and I am making money, so there is one example
I am actually quite interested in this btw, I am not just nitpicking for the sake of it. I believe I am a drain on the economy. I would love to be wrong about this
* InteractiveBrokers (Jack of all trades, low cost, a horror story or two but also a free data feed)
* Mirus Futures (Solid futures broker)
* Think or Swim (Low margin requirements)
* Optionsxpress (Recommended for cheaper options)
I am using IB, what is this free data feed you are talking about? I am paying for an NYSE data feed