1. Ojai - Re: Time and Sales - As a trader, times and sales w/ quotes is a critical components in determining stocks to play. Times and sales gives a real time, with the option at scrolling back and looking at historical prints in the stock. In doing so, you can "see" the size prints, the accumulation or distribution of the security. Using the "w/quote" option you can see historically how the stock reacted given certain trades coming onto the various mm's trading desks. Thus a time, sales W/ QUOTES might look like
10 1/4 - 10 1/2
200- 10 1/2
400 10 1/2
2000 10 1/2
10 1/8 - 10 3/8;
In this instance you might see prints on the offer which might indicate bullishness but then the quote drops. Might be a large seller, etc. Nonetheless, ts/q screens allow you to go back and take a look at these factors. Depending on the cost, it should be utilized. Just curiously, what does your quote service charge for the service? I couldn't imagine it would be too much since it is just a compliation of data already paid for....
2. Donald and others - First off, Donald, your comment on calling me <<Sho*t hot>>, I have no idea of why or where you are coming on with an attitude. I have always respected this thread and the trading desk thread for its ability to stay away from this kind of name-calling. I have always tried to add some perspective to the content on this thread, at times being bullish on trading yet all the while just simply trying point out to those who haven't tasted the pain of trading, that there is downside. Actually, anyone who has followed my posts here or on the Trading Desk should know that it is only recently that I have taken on this cautious tone. I guess thats what a bad market does, it makes you shore up your discipline and caution others. I'm not trying to ride anyone or say that trading isn't for everyone, just trying to help keep some from making a mistake or two. Granted, most of us have discipline, but some come onto threads like these and only see the bright side and not the downside, and go right ahead risking their families money. I'm not trying to be motherly, but just trying to add guidance which comes from experience.
3. Re: <<unfulfilling>>, and a comment that wondered why I do it for others and don't trade just my own cash.... Without a doubt, I love, more than anything the job that I currently have. I deal with stocks, customers, trades, other firms, etc. all day everyday. I love monday mornings, so much that I get up very early, pumped and ready to go, no different than many of you. Sometimes I wake up in the middle of the night and check foreign markets, news, etc. Me personally, I can trade my own account whenever I want, and do well doing so, yet I am assured a very, very nice salary, day-in, day-out, for my services for our firm. I have an equity stake in the firm, something my family and I can rely more suredly than trading my own account day to day.
Like I said, from my experience, which you can question and doubt all you want, most great traders move on to something more than simply trading their own account. Perhaps heading a hedge fund, mutual fund, working for a large/small mm firm, third market maker, etc., who knows, butyou do the math. Wouldn't it be great to run a hedge fund with 30, 50 investors each with 1/2 million and you collect a % percentage management fee and a percentage of the profits...now, to ME, that's a move in the right direction. Me, I have done the super-active trading thing and have realized that I, me, myself, can do better with a different mix of priorities.
Trading for profits runs into a wall sooner or later....Lets run the numbers...What is the max capital, you think you can trade, reasonably? 300,000? I have seen lots of individual traders and 300,000 means you have 5 to 15 to 30 positions, 600l,000 with margin power...thats a lot of capital to manage for short term trading (swing trading and longer term trading, thats a different story, but then thats not really what we are talking about here...we are talking about trading as a profession.) Most traders have a tough time managing 150 to 200 with margin, What kind of return do you think you can earn on that? 100%, assuming everything goes greeat...sure it might be more but what is the average you want to shoot for? 100%? (on a side note, how many out there actually made 100% average on their principal over the past few years?...I think I only did that one year in the past 5 and I consider myself a good trader, and I assume my firm thinks the same..could have been a lack of committment to trading my own account, but I think that shooting for that as a return is reaching).
So lets say all goes great (which isnt the norm) and you earn 100% (which I think is reaching) you earn 300,000 each year...sure your principal goes up and you committ earnings to a longer term portfolio, etc. but you still can't really trade day to day too much more.
Without a doubt 300,000 is a lot of money. I live a pretty inexpensive, work and not spend, lifestyle, so it would be plenty of money. But if you like moving on, going after the next hurdle, tackling the next challenge and pushing yourself, you run into a wall that trading limits you to....
That is all I am saying buy "unfullfilling". I am not sure how long many of you have been trading, and I don't mean this disrespectfully, but if you have only been trading for a couple of years, then enjoy it, do well, put money away, but in a couple of years, don't get dismayed if you lose interest...It is par for the course for Wall Street Traders.
<<Boring Posts>> I never claimed to be an exciting person. I have a certain discipline that has gotten me to a status in life, in my firm, etc. Many on the thread post various messages about specific stocks, specific trading theories, specific analysis, technical, fundamental or hybrid theories, etc. and I think that is great. At times, I have added my few cents in in these areas, but personally I think it is pretty well covered by Irby and some of the others on the thread. I mean, there is no exact right or wrong answer to some of this stuff. Ask a technical analyst what they think of charting and the answer is entirely different than a fundamentalist. Ask some traders about either of these and you might get as many answers as their are stocks on the nasdaq.
If I had some winning strategy, winning stock list, awsome software tool, I would share it with these threads, without a doubt. yet, we all know that no such thing exists...if it did, that person with "it" would have all the money.
My contribution to these threads comes from perhaps my exposure and experience in market activity, market making and trader acticity and experience. Also, as far as posting during the day, I usually handle postings early in the morning and at lunch, which is usually the slowest part of the day. These are just about the only parts of the day that I can do so.
Personally, I think all of these posts have become "boring" as a result of the market. The market has simply become somewhat sour and thus there is a lack of enthusiasm on the threads as well. Take out a lot of talk about online quote services and online trading firms, and this thread. Since we don't really talk about online trading firms on the trading desk, its has gotten slower faster. After all, like I said previously, with day trading, there is a wall you hit with profits and topics to talk about. We could rehash everything we have always talked about etc. Sure, I could add my two cents about online trading firms, market makers, etc. but then eveyone knows my stance, that I don't like them at all and I think that traders are doing a disservice to themselves by dealing with them, with their bells and whistles, etc. I have posted about this previously and most know my stance. I don't feel the need to continuously rebut and respond to each mistaken point I see. It is a hot topic on this thread and I don't see it being benefiical for me to take such an aggressive stance on this point since it is such a well-accepted institution.
Anyway, anyone who has followed my postings and the trading desk thread knows that I spend a decent amount of time contributing when I can. I do so with sincerity and with the best interests of the thread in mind. If it bores you, sorry. Go to one of the hype threads where you can surely get the story of the day. Nonetheless, the items that we have talked about, strategies, discipline, limits, self appraisal, have helped me become successful and hopeful with add to what the rest of you are doing.
Final point - I strongly suggest that interested parties check out a few magazines you can find at bordens, etc. One is called Technical Analysis Stocks and Commodities. It is entirely regarding technical trading strategies. It does a good job explaining advanced topisc. I was at Bordens with the wife this morning. This month's handles Reversals and momentum, volume indicators, and a few other excellent topics. As well, Wall Street Trader, is more about traders, firms, hirings firings, firm approachs etc and a little bit about strategy but nonetheless, these are two trade mags in the area.
Hope everyone had a great weekend!
Regards,
Steve@yamner.com |
