by greatpoint | Feb 2, 2018 | Proprietary Trading
The DOW Jones Industrial Average started with a dozen listed stocks back in 1896, and now lists 30 American conglomerates with only one original company, General Electric, still participating. The addition of Apple to the DJIA in 2015 shows that it is no longer a listing of just “industrial” companies. The DOW took 77 years to achieve the first 1,000-point mark, and in 2017 alone it’s achieved that five times over, ending the year near 25,000. (more…)
by greatpoint | Jan 3, 2018 | Proprietary Trading
Bitcoin has been a hot topic in the trading community the past few months, with spectacular runups in the price for Bitcoin and a whole host of alt-Coins. We could write for days on what Bitcoin is, or we could spout another article contributing to the FOMO syndrome (fear of missing out), but we would like to get right into the trading-related stuff and tell you what you really need to know about trading Bitcoin. (more…)
by greatpoint | Dec 5, 2017 | Proprietary Trading
Another year and the stories of corporate scandal, wrongdoing on the part of either corporate big wigs or their employees, never seem to slow down from giving us something to talk about.
Here’s a recap of some of the most notorious dealings or just plain dumb mistakes that occurred in 2017.
by greatpoint | Nov 3, 2017 | Proprietary Trading
There are many advantages to trading stocks versus futures, with some of the best trading opportunities found in newly created IPOs. One advantage of trading stocks is the sheer number of products available with thousands of individual stocks to choose from, compared to a handful of indexes on futures markets. Even on days when the overall market is quiet, many individual stocks have an actionable trading range due to company or sector news. (more…)
by greatpoint | Oct 9, 2017 | Proprietary Trading
A new bill was just introduced by Representative Loudermilk (R-GA), which would amend the Securities and Exchange Act of 1934 to basically reduce or eliminate regulation overreach into business models of exchanges that do not involve either reporting or effecting a transaction on the exchange. As Representative Loudermilk put it in the following statement when introducing the bill, “Regulatory agencies have a tendency to expand their reach into areas they should not be regulating and engage in mission creep, which can stifle innovation.” (more…)
by greatpoint | Sep 5, 2017 | Proprietary Trading
Volatility in the stock market has a direct impact on stock performance and annualized returns. Historically, when market performance is positive, volatility will tend to decline. Conversely with higher volatility, investors experience greater risk, while the market sees a decrease in returns. With the current calmness of the stock market, we have to wonder how long the market will sustain its low volatility, and when we should be concerned. (more…)
by greatpoint | Aug 2, 2017 | Proprietary Trading
Once you understand the very important differences between online brokers and professional trading firms, you will realize why you should dump your online broker!
Online brokers such as Ameritrade, ScotTrade, Fidelity and many others are the gateway to the stock market for most people. For savvy investors with larger balances or an active trading style, however, there are definitely better options that you should be aware of.
by greatpoint | Jul 6, 2017 | Proprietary Trading
We have discussed Payment for Order Flow (POF) and how High Frequency Trading (HFT) firms make money on your trades. We’ve shared how Maker-Taker affects the way that trades are executed. Now let’s see what you can do to improve your trading returns within this complex and often predatory environment. (more…)
by greatpoint | Jun 5, 2017 | Proprietary Trading
As any reputable online trading broker would agree, the Maker-Taker pricing model can distort the market and alter the way market participants transact stock orders. Maker-Taker refers to a pricing model that exists in most exchanges, to encourage stock liquidity in their venue. (more…)
by greatpoint | May 9, 2017 | Proprietary Trading
Latency arbitrage is the practice of one party, perhaps a predatory HFT firm, exploiting a time disparity and earning profits with a computer algorithm for trading, when that trade is executed solely because of a latency advantage. Latency arbitrage has raised many heated discussions among all market participants, the SEC and government law makers for many years, yet this unfair unequal access to US equity markets is still the main strategy of many predatory firms.
Let’s take a look at what exactly latency arbitrage means, why it occurs, and what we can do about it. (more…)