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

To: TFF who wrote (7242)	5/16/1999 10:51:00 AM
From: Eric P	Read Replies (4) \| Respond to of 12617

Although my daytrading to date has been exclusively Nasdaq, I have recently begun considering daytrading in NYSE stocks. I would like to hear others comments on the advantages/disadvantages of trading NYSE versus Nasdaq stocks. As I see it: Nasdaq Advantages: 1) Fast executions on ISLD 2) Ability to see Level II data for depth of market 3) Ability to trade after hours using ECN's Nasdaq Disadvantages: 1) SOES useless in stocks that are moving 2) SNET useless in stocks that are moving 3) ISLD trading can result in partial fills (7 shares, etc) 4) Market makers only showing firm quotes for 100 shares 5) 17 second delay given to MM's before they must update quote 6) Even if alone at the inside bid/ask and multiple executions take place at your price, you won't necessarily get filled, as payment for order flow brokers simply fill their orders by matching your price. NYSE Advantages: 1) The NYSE exchange specialist is forbidden from executing an order for himself in preference to filling an existing limit order on his book (i.e. from a customer). 2) Your limit order has equal standing with all other limit orders on the NYSE book. No bypassing your order on NYSE, orders filled based on order entry time. 3) You will never get filled with 7 shares out of a 1000 share order! 4) The stocks move slower and may be more easy to predict direction (?) with lower likelihood of expensive whipsaws(?). 5) The posted quotes are 'real', and therefore give you a realistic hope that they can be executed against (i.e. no 17 second phantom MM) NYSE Disadvantages: 1) Order executions can be much slower due to the trade being filled manually by the specialist using the SuperDOT system, typically 10-60 seconds (is this about right??) 2) The specialist does not have to show the full size of the bid/ask on the book. 3) Payment for order flow firms can bypass your limit order on the NYSE book by executing their customer trades for themselves on regional exchanges. 4) Lower volatility means less movement and thus less profit potential for 'perfect' traders. 5) No ECN's mean larger spreads (???). My biggest concern about trading NYSE stocks is the delayed execution time which would be expected from the manual order filling process. How long do fills typically take in active stocks? How often does the stock move higher ~5-10 seconds after your order and you don't get a fill at the ask price? I would appreciate comments from others who have daytraded both Nasdaq and NYSE stocks on the advantages/disadvantages of each. Hopefully, this will be a topic that many of us can benefit from discussing. -Eric