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

To: TraderAlan who wrote (6357)	1/9/2000 9:46:00 AM
From: Jay Lyons	Read Replies (1) \| Respond to of 18137

Followed the discussion on Soes, may I recommend the following link? It's a "book" on using the various order routing systems. It has, among many other things, a good discussion on when Soes can be used effectively, and when it can't be used at all. It costs around $60 for a year's access. tools-of-the-trade.com My only connection is that I have dealt with the author, Rogan LaBier, in his capacity as a head trader at MB Trading. He has always been a standup guy with me. I had never used Soes prior to reading the book, and have it used it effectively a few times lately. For instance, your plan may tell you that it's time to take half your profits at a point in a momentum stock at the same time that someone else has just put in his Fidelity order. Now Fidelity is going to sell to that person at the offer price, but is probably going to try to buy it on the bid. You can hit that PRU (or whatever they're using) offer with soes and get the fastest execution imaginable. When you find yourself, for whatever reason, trading against the herd and there's are market maker size or sizes large enough to cover your position, Soes can be a handy tool. One interesting thing that I've noticed about the few times I've Soesed an order. When I've hit a market maker with Soes, he's always dissapeared the moment he sees he's been hit, and these are in situations where my feeling is that if I'd Selectneted him he would have filled and stayed on the bid. My sense, and it's just a feeling based on a few executions, is that he feels like he's just seen a cockroach on his screen, and he knows (or thinks he knows) that where there's one cockroach, there are are going to be many more. I'm no big shot trader, BTW, so except for my recommendation of Rogan's book, please don't take any of this as gospel. Jay