Dark Pools with Stefanie Kammerman

Stefanie Kammerman is a trader, runs an active live trading room where she educates over 300 people, a renowned speaker on trading, a musician and an author.

Stephanie landed her first trading job in 1994 as an assistant in a prop firm where she learned about the stocks markets directly from her boss for two years before being entrusted with a quarter million dollars to trade. She was trader of the year in her first year.

She now trades options even though she started out actively in stocks. She says with options, you need not have a huge amount of capital to trade as long as you learn how to trade right.

Her trading philosophy is don’t think about the money, stay true to your discipline which is her secret to trading. She calls herself a trading psychologist nowadays and has done a good job teaching and sharing her thoughts through her book dark pool secrets.

Despite the manipulation that happens in the markets, she says even the little people can profit of by following the trend and the volume. She is technically oriented and has a rule based system towards her trading. She is not an analyst but a trader and explains to us what she considers a good trade.

Listen in and learn.

[sylviastraderslounge]

Day 128 of #222daysofforexeducation
Dark pools.
Dark pools are large private electronic trading exchanges for securities which are not accessible to investing by the general public. They are not publicly disclosed and the prices are not based on current bid and ask quotes. They provide off-public exchanges trading for major private individual investors as well as institutional investors. Like High Frequency Traders, they raise the following concerns in the financial markets; corrupt regulators, collusion with exchanges, zero ethics and sometimes zero market risks. For lack of transparency, an investor stands a better chance of getting a higher price. Since dark pool participants do not disclose their trading inventory to the exchange prior to execution, there is no order book visible to the public. Trade execution details are only released to the consolidated tape after a delay. Dark pool client orders are ideal fodder for predatory trading practices by some HFT firms which employ tactics such as "pinging" dark pools to unearth large hidden orders and then engage in front running or latency arbitrage. Dark pool exchange prices do not reflect the real market prices since they are not based on bid and ask quotes. They have reduced market impact as well as lower transaction costs as they do not pay any exchange fees.