Real American Capital Corp (RLAB)

[LetHerRun]

Many may add at .001...if we see it again, but I don't think they will be day traders. Day traders are looking for a gain today. If they bought in at .001, they would have to be able to sell the same day they bought at .0015 at a minimum to make a profit. Too big a risk for most daytraders. Daytraders don't buy unless they see a stock that swings up and down a little bit. By the time they see movement with these tick sizes, their opportunity is lost. I know a little bit of a looptical argument, but I really think the tick sizes at these levels are going to kill daytrading. They may kill buying as well, but at least we know if someone buys, they are more likely than not buying to hold for at least a little while. If we were to fall back to the triple ohh's again, then I could see daytraders coming back.

Of course, there is another wrinkle in all of this. MM's are still allowed to execute trades between the bid and ask (or not at the standard tick sizes). With that being the case, our quotes may be more like estimates than actuall quotes. If that's the case, this new rule does nothing but put the investor in the dark. I am assuming this is not the case and most trades will still happen at the bid or ask. I guess only time will tell.

Just my opinion.