Couldn't sleep..watching the Jazz game...
"I agree completely with that assumption. I traded an amex stock today and it was my second non-NAS trade of 1998. It isn't that I am focusing on stocks that trade like tornadoes, its that I am focusing on the exchange that affords me the greatest degree of control over my little trades."
We are just seeing things differently. I am saying that there is no way, no how you are going to find some gimmick, some trick at using the executions to your favor that outfoxes the market makers. And when it comes down to it, the NASDAQ is a negotiated marketplace,not maintained by one specialist, but various marketmaker, with a lack of linearity and extreme volatility, run by the market makers, the foxes watching the hen houses, where they provide a few execution systems, the most expedient of which have time and size restrictions.
The NYSE is made by a relatively nuetral third party, one party making the market...what could be more fair, given the immediacy of superdot trades with unlimited size/time, no perse restrictions?
Again, of course I was speaking in generalities. There are so many traders, doing so many things. I perhaps was specifically talking based on experiences with traders who are simply lured to the KTELs, SEVLs, etc. Ofcourse there are great opps on nasdaq. About 20% of my traders are OTC, which ends up being quite a number at year end.
"I would add to the list of NAS "lures" that NAS stocks are easier to sell short.
Agreed 100%. The ability to hit an uptick make shorting on nasdaq an A+ while shorting on the nyse, in terms of complexities would be a C-.
The NYSE wasnt so tough a few years back, where you could smack bids, but man did it get ugly.
hoping ... implies a nasdaq trader is employing hope which ofcourse we all know is about the last thing a trader needs to be doing to meet with success.
** Agreed as well, but we all know that many traders get into positions where instead of objectively evalutating the position, the prints and action, they start wishing it higher. On these incredible movers and shakers, you could be out 1/2 point in 10 seconds and then you freeze like deer in the headlights of an oncoming car. You know you should be selling it but dont, youpray. Most of those deer end up as stew.
also "split second soes"
HA! *Actually, most soes executions on my NASDAQ circuit are split second. Most execution reports are on my screen literally by the time I can perceive the return key snapping back up. Split second. Of course we're not talking about the KTELs and SEVL which I hvae seen market orders on SOES time out. The biggest delay for most is the internet and then compound that with inability to setup and play a few systems at same time. We work this way for our clients but most accept current internet trading systems in compromise for their tech offerings.
I use soes maybe for 25% of my executions.
**Actually, I use SOES for about ZERO of my executions for myself (although for clients we use it all the time). Remember, as a professional, I can not use SOES which has perhaps made me a better trader...like playing bball with your off hand only for a year.
OK now here is the one part that incited me to respond...."most of these stocks are being driven by daytraders"
So it was daytraders that opened up ENMD at $84 7/8 Monday Morning?
**Yes and market makers...You find me a fund that was paying 84 7/8 for stock, not selling and i'll buy you a lunch, I'll even call your pizza of your choice and have them deliver it!
Suddenly I'm sensing a little tension in your post. You shouldn't take it personally. Its meant to bring out great dialogue like this, not get anyone heated....but see my continued response below....
"Of course that is a required point of view for a market professional to take, right? Point the finger at us little guys that fix our own brakes, while all the "professionals" that make the market in ENMD gapped it up 75 points and in one fell swoop destroyed the accounts of some poor slobs who put in market buys on their laptops on sunday night ala the e trade commercials...
**I dont make markets or act as principals and guide my clients the best I can. i definately dont blame anything on the investors, day traders, no way no how. I know which foxes are watching the henhouses. If you have followed my threads you know my opinion. I was just referring to the fact that many of these stocks swirl simply on day traders and those are exactly the ones I want to avoid. I'm not blaming anything on anyone, not blaming the fight on anyone, just deciding I dont want any part of it. best of luck, have fun, but i'll watch from the sidelines.
An example...that KTEL...head that only 4 million share outstanding...3million in insiders hands , not selling..that means only 1 million share 'floating'...stock traded 7 million shares today. you telling me Vanguard's mutual funds were in there trading?
"Do they still show those on CNBC? I haven't watched cable since January.
I consider CNBC once of the most valueable news sources going. I would strongly consider you get cable.
"Not to mention whomever was short that stock, those guys are either, dead, divorced, or at the very least, deserving of a plaque that sez I survived the ENMD short squeeze.
* One complaint i had of several chat rooms i was invited to was the focus on discussion the shorting and short calling of stocks that were unshortable. An example, no KTEL stock has been available for quite awhile for shorting, yet you go into some of these chatrooms and ten different traders are shorting it. Becareful! They are either lying, papertrading or are shorting it illegally, or trying to hype it down.
"At any rate to blame daytraders for that is simultaneously, lame and popular - two prerequisite characteristics of any magazine article.
Whew..you're back! I thought you were getting serious on me. If I wanted serious, I would have practiced law. good point though, the article must be lame and poplular at the same time, all traders hedge!
"A rank newbie, I would guess, may be attracted to the most volatile issues of any exchange, like a moth to the flame.
* Exactly. And the idea of such a thread is for the more experienced to pick up items where they can but for some of the more inexperienced to hear such ideas and the issues from those who have made these mistakes in the past. I only know what I know and consider myself skilled because I have been there, done that, had the disaster, did the SOES thing, traded the crap, bot the news stories, etc. For whatever reason, I have been able to adjust, finetune and develop a business model that allows me to trade my own account successfully and maintain my position in the firm.
"Too bad, if only you and Alex could figure out how to do to the NYSE what Josh and Peter did for NAS when they outsmarted everyone and created ISLD. When are you going to get yourself together and devise away to enrich yourself and get that system or a knock-off of it where it belongs... on all our computers.
**If there we such a system, it wouldnt be for sale. If Josh had sucha wondeful, end-all system, he wouldnt be doing trades on it for everyone in the world for $1 a trade.
Let's go, buddy, times a wasting.
**I'm working as fast as I can. Bill Gates said he would send over a few extra programmers since they will have some downtime with win98 getting delayed, so i'll see what i can do.
The NYSE wouldn't have to keep buying advertising trying to tell everyone how great an exchange it is. Its not my fault those two exchanges are lame, I would love to trade over there more.
* LOL!
When do you think a version of superdot will be available for home use?
*My understanding is that some firms have this access, we offer it but its the old, eeeek, phone call, you knowmy opinion there.
Funk, tension, dialogue and humor make this one of my favoriate threads! Where's that guy Green?
Regards,
Steve@yamner.com |
