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perspective. With the collapse of the stock market in the crash of October 1987, I came to the realization that the only way I could hope to day-trade effectively would be through a mechanism that mandated that market makers honor their markets. Depending on the good intentions of the market makers to honor their quoted markets was very naive on my part, bordering on outright stupidity. After a relatively short period of time I realized that getting a proper and timely execution was almost impossible when stocks were moving. Then suddenly it came to me that I was in a position to utilize SOES, which guaranteed immediate execution of orders for up to 1000 shares. This revelation was the shot heard round the world for the beginning of DAET and market equality for all. |
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Literally from the first day of the implementation of SOES in 1984, I had problems with the NASD over its use to the point where I felt compelled to stop using this apparently wonderful system. In reality no market makers actually used SOES from its inception in 1984 until after the market break in 1988. As a student of Nasdaq, I rediscovered SOES after the crash of 1987 and began to use it quite successfully even in the face of much NASD and industry pressure. The relatively significant economic success I enjoyed by using SOES emboldened me to not buckle under to pressures normally intense enough to bring any small NASD broker-dealer to its knees. The crash of 1987 and the concurrent death of my father drained me of much emotion, including the fear of the NASD and the market makers. These were the circumstances for my decision to go forward. |
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My small band of SOES electronic day traders were trading exceptionally well to the dismay of the market makers. In the early days of "SOESing," the market makers didn't know how to react to SOES traders. At first, market makers just ignored us. They felt that the powers that be would take care of the SOES "problem" expeditiously. But the trading success continued as more traders used the system. |
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The immediate problem confronting the market makers was that they refused to accept that SOES activities were |
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