ams - I found your message addressed to Liren very interesting and informative. I won't ask you who you trade with but would like to ask what type of trading order do you generally recommend -- market, limit, fill or kill, etc.
My feeling for what it's worth is that a market order is almost never right, although perhaps in a fast moving market there may be exceptions. Generally, doesn't the investor do better to exercise patience and use within-the-spread limit orders, on the NYSE if not on most NASDAQ stocks? And given the recent SEC imposed changes now being introduced on NASDAQ, aren't intra-spread limit orders becoming the best way to trade there, too? Of course, limit orders entail the risk that you don't get a fill and the market moves away from you, but in a large number of trades you would gain on some these and lose on others, with the luck factor tending to be offsetting. If you don't accept the last statement, would not agree it applies to investors who use fill or kill orders.
I found your remarks so interesting, I went back to read your previous posts and was delighted to find the thread on SOES. I haven't seen anyone explain to my satisfaction why the NASDAQ market creates this opportunity for SOES traders although I did read the definition you gave in one of your posts. If you could amplify on that definition, explaining why opportunities for profitable SOES trading exist on NASDAQ but not on the NYSE -- or if you know of a web site that discusses the theory of SOES trading (Is it a form of arbitrage, risk arbitrage, spectulative technical analysis -- whatever) I would be very grateful.
Thanking you in advance for any comment you have, Geoff. |
