HOLLYWOOD STOCK EXCHANGE
THE ENTERTAINMENT MARKET
THE ENTERTAINMENT MARKET
It's far from clear how this is going to work in the long term, but I see the opposite happening and the impact of reset trades increasing
I think you're correct that we'll see more stocks move at reset. But there isn't a fixed number of trades that will be spread over a larger number of stocks. It's closer to say there is a fixed number of reset traders, and they will increase their reset trading because there are more stocks moving at reset. The # of reset trades is far more elastic than the # of reset traders - if you're up at 3 am anyway, it doesn't take much more effort to trade 40 stocks than 20. So more stocks moving => more trades at reset.
But it doesn't end there - more stocks moving => more trades at reset, and that means there is more money to be made at reset. Now the number of reset traders isn't truly fixed. Other traders basically have two options - keep their style and do the best they can, or join the reset traders. Not everyone will do this, but it only takes an extra 10 or 20 reset traders (out of all the active traders on HSX) to have a impact on price that is worth other traders jumping on. More trades at reset => more money to be made from reset trading => more reset traders => more trades at reset and so on
Understanding This Weeks Changes At HSX Nov 03, 09:32
why do you think reset trading will be minimized by the changes? {nm} Nov 03, 11:33
I had the same question...not disagreeing...just confused...lol {nm} Nov 03, 12:32
the game changes could change reset trading... Nov 03, 15:54
whoa...thx for the detailed analysis...sorry I made you type so much...hehe {nm} Nov 03, 16:33
I was not being ticky tacky (whatever that is...) Nov 03, 21:15
It's far from clear how this is going to work in the long term, but I see the opposite happening and the impact of reset trades increasing Nov 04, 06:41
i think RH's point was that who the hell is going to reset trade for 3 to 5 cents profit? Nov 04, 11:08
for what it's worth, not all trade between midnight-8am Pacific Time is 'reset trading' Nov 04, 15:27
