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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TraderAlan who wrote (5550)	11/21/1999 2:23:00 PM
From: E. Davies	Read Replies (1) \| Respond to of 18137

The wording is a little misleading when you say that MM's have "no obligations to fill your orders". They must fill the order within a specific time or pull the bid/offer, at least that is how it is supposed to be. In your discussion of the Island Book you might mention that it is often several seconds ahead of Nasdaq L2. I've also found that if the bid/ask on ISLD pulls away from the market odds start leaning very strongly that is the direction the market will move. One little trick I've learned: If I see on L2 a large INCA order or a collection of MM's at what I consider a resistance level I will often enter a ISLD order just outside that level. ISLD often overshoots because of the fact that there are traders watching primarily only the ISLD book. Its fun to get a sell at 30 3/16 when the ask never goes above 30. Having that cushion makes it drastically easier to hold until the trade develops. Eric

To: TraderAlan who wrote (5550)	11/21/1999 2:57:00 PM
From: eric012	Read Replies (1) \| Respond to of 18137

MM's Do have certain obligations, especially when receiving "Incomming Liability Orders." They're obligated to trade when faced with one of these (as long as stock hasn't traded ahead). Also- SOES orders are good up to tier size, supposedly. Really awsome discussion of this and other execution methods at WWW.TOOLS-OF-THE-TRADE.COM. Best info I've ever read on executions. Saw the author at the Day Traders convention in California. The guy seems really knowledgable. And the book is great! the book is "dedicated to order routing/execution."