I would appreciate comments from others who have daytraded both Nasdaq and NYSE stocks on the advantages/disadvantages of each.
Eric,
From a scalper's perspective, and only from that perspective, I've found it near impossible to trade NYSE issues:
1. NASD fills are almost always instantaneous. NYSE fills take the greater length of time that you noted. By the time I've filled a NYSE stock, the price may have changed, futures trends may have changed, etc. (As for the NASD fills, I'm using Fidelity, which sends to 1 MM, typically in-house, and which instantaneously fills out of inventory at the current ASK so long as auto-exec is enabled).
2. NASD stocks permit insight into L2 depth. NYSE stocks do not. For scalping purposes, that is a big distinction. I'll get into a NASD trade when I see INCA and ISLD and GSCO on one side, maybe MASH on the other. Instantaneous fill. Then jump out of the trade when INCA, ISLD switch to the ASK. Instantaneous fill. None of this with NYSE stocks.
3. I have successfully position traded NYSE stocks, but this assumes a trade duration of more than a minute or two. This coincides with the fact that L2 (at the point of trade entry) becomes irrelevant for a longer-term position trade. Instead, what is far more relevant for these longer trades are charts. As charts apply equally well to both NASD and NYSE stocks, the longer term position day trade should work just fine on NYSE stocks.
Gary Korn |
