Day-trading’s father: All-Tech chief Harvey Houtkin is a hated man on Wall Street

After the crash of 1987 – when the finger was being pointed at market makers who refused to pick up their phones as the markets went into freefall – the Small Order Execution System (SOES) was made mandatory and a 1,000-share limit imposed. Market makers had to execute trades at whatever price they had posted. Since SOES was done over computers rather than telephones, it also meant instant execution. All-Tech chef Harvey Houtkin realized that if you could catch the market makers napping you had a discrepancy between the actual price of a stock and a price someone had to take. It was the perfect arbitrage, and it made Houtkin a fortune. (New York Post)

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