Comments: Eavesdropping threats: Listening to chat

By monitoring the NASDQ and understanding the prints and who the players are behind the prints, the trades are easily understood. It is like an old group of friends that play poker, over the years everyone knows the other signs, the tells of bluffs and the real hands.

The same scenario happens in all trading markets. The trader that plays every day knows when he is playing against a computer and when he is playing against another player of equal ability. The key is the activity level, which must be large enough to make it worth his time and money to be playing in. Like any good gambler small profits with low risk profiles are best, the more the better.

If you can automate this scenario then you get to play faster and at more hands. Large macro bets are a fools game, grinders never look for the big lick, they fish where the fish are and keep fishing until more fish show up somewhere else.

Flipping for an .125 or simply the rebate can earn 2% per month on the money at 24% per year and the potential for a large trade now and then the rate of return conservatively approachs 30%. In very active market conditions rates of 70% are not unknown. At 70% return per year and margin of 10 to one things are pretty good.

The thing the banks never see officially is the network of cooperation amoungst the grinders. Many of the insiders that gamed the mutual fund field had been doing it for twenty years in a small way without being spotted. Keep the game small with little or no bragging and the game will make you rich. Make it large and it will make you infamous.

IM is way to blunt a tool and easily understood by all that read it.

Posted by Jimbo at September 26, 2004 05:21 PM
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