Gary,
Like Shafik says, trading style and objectives makes a world of difference as to what order entry method is going to work for you.
Coupla points:
The head trader at Watley told me one time that, at least for phone-in orders to MM's, AON is an invitation to be ignored because it removes their obligation to post-or-fill your order.
When you use Selectnet, are you using the broadcast or preference option? I never use broadcast and I am not familiar with how well it works. Trading Intel, it depends how heavy the volume is and how fast the price is changing. If you are trying to Selectnet-preference a particular MM and his name disappears before you can hit the button, then the market is way too fast for that method. If MM's are hanging around for 10-15 seconds, that route may work.
I haven't tried this one, but I've been told that a Selectnet preference one level higher than the market is a sure-fire way to get executed. The first time I heard of that method I heard "broadcast" rather than preference. You might want to check with customer support on that one -- ask Peter. Or, ask Tom the head trader.
Fast markets that are moving away from you, I wouldn't place much faith in ARCA. Can be very frustrating. If it is a fast but static market, i.e. lots of trades but the price isn't moving much, ARCA can be OK. You will still find it takes an excruciatingly long time to get filled.
My favorite route is ISLD, although I use them all. Some stocks don't have that much ISLD volume. You can bid higher than the ask or offer below the bid to gab shares slightly worse than the market price. Like Shafik says, it helps to see the ISLD book, which pretty much requires a second monitor, depending on how you set up your screens in RT. Crossing the market like this with ISLD WILL result in partials if you don't get completely filled right away. This is a subject of a lot of misunderstanding and confusion for many traders. It's been discussed at length on the MB thread and more recently on the Cyber thread. I'll add to this tonight (have to get ready for today now).
I think that scalping and daytrading in general is a difficult and dangerous business these days as MM's, the execution rules, and your trading infrastructure are all working against you. If you enter a trade as short-term and then your system goes down, you have a major problem that can wipe out a lot of hard-earned winnings. That's just my opinion, and I haven't studied day-trading that much. Like Shafik, I'm more a position trader.
Hope some of this helps,
wily |
