Hi rrman;;;; I'm through the first week of daytrading
training, and it is a major cool thing. I can't believe
how many intricacies the Nasdaq market has that I was
unaware of. And funny rules, like you can't use SOES
for more than 1000 shares in the same direction in five
minutes. Now I can (somewhat) identify the other
participants, and get to know the style of the Goldman
Sachs Intel market maker, for instance. Amazing.
Lots of strange rules and alternatives. Before, I
just had limit buy, sell and short, and market buy, sell
and short, and those required complicated sequences of
key strokes. Now I've got 18 different keys that all
mean buy, short or sell, and their meaning can be
modified by use of the other keys, for instance to
preference a particular market maker.
SOES, SelectNet, ISLD, Instinet, the ECNs, there is a
substructure to the Nasdaq market I never dreamed existed.
Even if I never go live, it will have been worth it in
order to experience what really makes up the market. I
feel like I'm in trading heaven.
Regarding the three other students, I detect a tendency
towards gambling addiction, and somehow I suspect two of
them won't survive 3 months. (The gambling addicts get
an odd gleam in their eye when they describe their latest
stock purchase.)
I am reminded of the "efficient market hypothesis". Doesn't
the existence of people who live by trading pretty much refute
the theory? I think the economists are a little clueless.
They probably believe the current stock market is fairly and
efficiently valued.
I'm learning a whole new way of looking at a security. To
a daytrader, they are risky as hell, and ownership is to be
avoided at all cost. Stocks are only temporary places used
to increase your cash, not objects of desire. Don't get
into a trade unless you can see how you can get out with only
a small loss. And if that path starts to close, don't second
guess, don't think, just get back to cash. Missed money is
better than lost money. And don't worry about the condition
of the company's business, it will still be the same 60
seconds from now when you exit the trade. If you hold your
stocks overnight, you can lose your capital cause "News happens."
Anyway, I've been super busy, and having a great time with
Nasdaq Level 2. I'll post how things turn out when (if) I
go live. I seem to have the basic key strokes down, and had
my first winning practice session today, mostly on NETA.
-- Carl |
