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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?

To: indexit who wrote (40169)	7/16/2001 10:40:57 AM
From: stan_hughes	Respond to of 100058

indexit - Write the Naz, and copy a sympathetic politician who might see some votes in championing the cause of the little guy getting screwed by Wall Street. If the victims don't complain, nothing will ever be done. Things would be a lot worse than they already are if others didn't complain. They don't catch everybody, but they don't catch all the murderers either, no reason to accept it - JMHO

To: indexit who wrote (40169)	7/16/2001 12:18:55 PM
From: manfmnantucket	Respond to of 100058

re sell IBM 18.5... this would be such a simple problem to fix, all the way through the system! At the minimum, any order-entry interface should ask for confirmation and also report an error if the entered price is too far from the bid/ask prices. IBM trades on NYSE but also is handled on the Island ECN - if you had routed the limit order to Island, it would have crossed the best ECN bid automatically, which is probably a lot closer to the market than 3 points! If you frequently need to go outside the bid/ask to get filled- What kind of software are you using to route orders? I find the most effective thing is to avoid routing via SelectNet if possible since the time to cancel is so high. If you can tell your system to automatically check the ECNs first, and the stock has enough volume that the ECNs will be near the inside and give you an immediate fill. If that does not work, i.e. you hit an ECN price but get no fill, it could be that your quotes are delayed so you see phantom bids. At any rate, it's usually worth trying to split the spread on the initial offer and hope to get filled. Chances of doing this are again better if you route the order to Island - you're more likely to get filled by splitting the inside quotes if everyone sees your offer on top - AND knows it's a liable order. If your order is represented by some MM, it'll be slower to appear AND less likely to fill, since other people avoid trading with MMs... One difficulty posed by decimalization with this kind of bidding is that it's very easy for someone to outbid you by just 0.001 . So, the order-entry interfaces could use a "stay on top" feature as well. If I get outbid by a non-penny price, I figure it's likely that some computer program is competing with me to buy and calculating the price (humans presumably use the round-penny prices) and I'll be more aggressive in chasing the price than otherwise... MfN

To: indexit who wrote (40169)	7/17/2001 2:05:46 PM
From: bcrafty	Respond to of 100058

Today I was the beneficiary of that phenomenon indexit often speaks of, the illegal trade. I was long CIEN yesterday afternoon and put in a sell order this morning to sell at 33.50. At the time I placed it CIEN was at 31.50, so I knew I had a long way to go unless we had a good rally this morning. Nevertheless, my trade executed at 33.50 at 10:00 a.m., and my charts show that CIEN never got higher than approximately 32.60 around that time. Somebody's mistake? Dunno, but it's nice to be on the right side of the mistake. Or maybe my trading guardian angel was just being nice to me.