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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: TFF who wrote (4042)	5/8/1998 4:43:00 PM
From: Allen B.	Respond to of 12617

Irby, I think my experience as a inst. trader has helped me understand price movements in individual stocks and market maker movements. For example: If you are watching a stock (position or possibility), have a symbol ticker running (if your software allows)and watch closely the action in the prints. What kind of size is trading; Is there adequate liquidity? Look for block trades occurring without a similar trade to offset- this might signify a market-maker committing capital and may indicate size coming into the market. I'd say the most valuable lesson I learned was that things are not always what they might appear to be(especially to us daytraders). For example, I know that just because a market maker initiates a higher bid- it does not mean that the he is a REAL buyer of the stock. For listed stocks, I realize that the depth of a market goes much further than the bid size/ask size that we watch. If you are entering into a sizable listed trade on a inst. desk, you request a "floor look" which gives you all the players on the book and where they stand. My experience, however, has had little impact on the design of my daytrading systems and the disciplines I use today- that was done after work using the same resources available to everyone (books, the web, trial and error). It has helped me a great deal in the actual trading (whether to use SelectNet or INCA, should I preference a MM, why did I get filled there?, etc.). Regards, Allen