Tim,
i have good luck with selectnet and isld ....i will start using arca next week, can you give me the pros and cons on arca?
Yes sir.
The cons, unless crossing with another ARCA order or INCA size, the execution is dependent upon our friends the Market Makers, who although bound by regulation, must honor their displayed quotes, can will and do pull off with out a subsequent print showing up. This happens to me atleast once a week if not once a day.
The pros, you can , if it fits your style of trading, move a lot of shares on one ticket.
Real life example: I devoted alot of buying power to PPOD on Thursday morning, flipped some, bought some back, took it home. Friday morning I snubbed my nose at a very nice profit. The idea was, I was sitting on the launch pad... I was wrong!
Well at some point on a friday you have to figure, that even if you want to all of a sudden give up all your daytrading discipline and become an investor, there will be plenty of other traders who are going to blow out of the stock.
Once you figure that out, then you got to blow it out first. Right?
To cut to the chase, my PPOD idea just plain didn't work. A big chunk of my buying power was missing out on one of the easiest days to make loot in the history of the world. <gggggg>
So, with no real size on the best bid you look down a tick or maybe two. You see some liquidity there and wonder how long it will last, considering the hour of the day etc etc.
Not one to screw around. Ya use arca and toss out a sell for 10,000 shares at 8 3/4 even though the best bid was 1200 shares at 8 13/16.
You get out, one ticket, the stock breaks, - it was going to anyway - not too many minutes later some guys are only getting 3/8 for their third rate internut paper. <gggg> next.
Oh by the way, I "should" have gotten 13/16 for 1200 and the rest 3/4, but I only got 13/16 for 200... )c: so that sucked.
ARCA will not cancel out on you do to crossed market as ISLD does, yet it gives you visibility to the entire market as an ECN does.
The 10,000 offer is crossed by an ecn or two and two or three MM's. If it were not for ARCA you would have to work much harder and use a few tickets.
Some stocks just don't have much isld traffic, usually that in itself will be enough to make me move on to another name. Sometimes you can't help it and you end up in a name that trades a little less volume than you like and does not have the ISLD liquidity that you like.
I intend to use ARCA more in the future for two reasons. I plan on moving more shares per position and I expect ARCA liquidity to grow.
Keep in mind when an MM pulls off without printing a trade, that is not the fault of ARCA, that is just a regular screwing that has been handed out since the start and will be handed out until the end. Besides its a great sign you may be on to something. Chase it! LOL just kidding.
Ok so in this true story, I was right to go beneath the best bid and just be done with it, the subsequent stock action confirmed that the stock was weak at that time and price.
If the stock was nice and solid or better yet there were still aggressive buyers upticking it, than I could have offered out at or near the best offer with ISLD and gotten done.
I am certain I am leaving out a thing or two, but I can't get a handle on it at the moment.
funk |
