July 31, 2008 at 11:40 am | | Comments 2

Day Trading Community Loses Pioneer Harvey Houtkin

Harvey Houtkin, a.k.a., “the father of day trading” has died at 59. The original SOES Bandit was a controversial figure on the Street, but like him or not, it is undeniable that the man paved some early roads for early day traders which ultimately brought us to where we are today.

Some may argue that Wall Street was years ago destined to become more self-directed with the internet gaining popularity and online brokerages coming available, but Houtkin is credited with discovering some of the earliest methods which scalpers used to turn quick profits in the markets via the NASDAQ’s Small Order Execution System (SOES).

Harvey Houtkin was one who helped make the term ‘direct access’ an everyday phrase for those involved in the markets. He also undoubtedly helped start the shift in the commission structure which Wall Street used to utilize. Can you imagine having to phone your broker today to jump in and out of some biotechs, and pay $1 per share in commissions? Ouch – no thanks!

He was a pioneer who started a revolution, and as a Bandit myself I am sure glad he shared his methods with the world and got people thinking in a different way about trading the markets.

Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service

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  1. Sad to hear of this news.
    Harvey Houtkin did more to level the playing field for the individual trader, the individual investor even, than the SEC has done in its entire existence.
    RIP Harv.

  2. Having traded at all-tech with Harvey, he will be missed. He is the person
    responsible for stocks being quoted in decimals as opposed to half point
    and quarter point spreads. He took on the SEC and won.

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