Irby,
Let me condition the statement that I would simply avoid the markets' 10 most active, we all know the type, the CD's, CPQs, IBM's that trade 2 million in the first 1/2 hour. But there are times during the day that these issues on a given day dry up and buyers might start tipping their hat.
Oh, one other issue...lets say we have an ENMD going on. Some market making firm will get their best trader (s) and they will be assigned the stock for the day. They dont want some rookie taking in a few too many thousand at 85. As well, forget your dells, intcs, msft, AMAT, etc. those stocks will be manned by the firms top, seven figure traders.
So my question is? Which stocks do you want to trade, which traders do you want to trade against?
Personally, I want to trade against the worst traders in the firm, the traders who spill mustard all over their pants and while they are cleaning themselves up, they forget to adjust their quote. (just joking, sort of). Cramer said something like, buy stocks from idiots and sell to schmucks. Trading the wild stock of the day assures you are trading against the various market making firms' best traders as well as all the day traders in the world.
Regards,
Steve@yamner.com |
