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

To: Eric P who wrote (7244)	5/16/1999 11:42:00 AM
From: Gary Korn	Read Replies (3) \| Respond to of 12617

I would appreciate comments from others who have daytraded both Nasdaq and NYSE stocks on the advantages/disadvantages of each. Eric, From a scalper's perspective, and only from that perspective, I've found it near impossible to trade NYSE issues: 1. NASD fills are almost always instantaneous. NYSE fills take the greater length of time that you noted. By the time I've filled a NYSE stock, the price may have changed, futures trends may have changed, etc. (As for the NASD fills, I'm using Fidelity, which sends to 1 MM, typically in-house, and which instantaneously fills out of inventory at the current ASK so long as auto-exec is enabled). 2. NASD stocks permit insight into L2 depth. NYSE stocks do not. For scalping purposes, that is a big distinction. I'll get into a NASD trade when I see INCA and ISLD and GSCO on one side, maybe MASH on the other. Instantaneous fill. Then jump out of the trade when INCA, ISLD switch to the ASK. Instantaneous fill. None of this with NYSE stocks. 3. I have successfully position traded NYSE stocks, but this assumes a trade duration of more than a minute or two. This coincides with the fact that L2 (at the point of trade entry) becomes irrelevant for a longer-term position trade. Instead, what is far more relevant for these longer trades are charts. As charts apply equally well to both NASD and NYSE stocks, the longer term position day trade should work just fine on NYSE stocks. Gary Korn

To: Eric P who wrote (7244)	5/16/1999 12:51:00 PM
From: TFF	Respond to of 12617

NYSE is fine for swing trading. Unfortunately for the NYSE the bulk of the most volatile stocks reside on the NASDAQ. Until that changes the NYSE will provide limited opportunites to short term speculators. Perhaps the DOW 30 will spinoff net subsidiaries which might change the landscape;)....DOW.COM 30??

To: Eric P who wrote (7244)	5/16/1999 1:20:00 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 12617

Eric, I have tried my hand at daytrading both Nasdaq and NYSE stocks. I think Gary is right in distinguishing between scalps and what he calls position trades of a few minutes or more. But if your time frame is minutes, the only disadvantage I found with NYSE was some glitches in the system I was using that delayed confirmations, especially on cancellations. Being tied up for minutes in no man's land is very disconcerting. With a good broker, you shouldn't have to deal with this problem For NYSE stocks, short term volatility does tend to be less, which I consider to be a good thing. You still have to watch out for rather sudden movements, especially when things are slow; in spite of the restrictions on the specialist, he can and will suddenly shift the quotes, but more often than not prices tend to decay back to the trend following sudden movements, something that can be used to advantage as well as getting clobbered. Of course there are always exceptions. Sometimes sudden moves truly reflect the market, but no more so than with Nasdaq stocks IMO. On heavily traded issues (watch AOL for example) the spreads do tend to be large, and the prints are few and far between because they are aggregated, but keep in mind that the specialist is constantly matching orders that never appear as quotes. When things are moving you have a very good chance of getting filled when splitting the spread, and when things are slower you can make the market because if you don't get filled your quote gets posted. I don't have data to prove it, but my feeling is that spreads tend to be more stable than Nasdaq spreads, which have this habit of changing from a nice 1/16 up to 1/4 or more every time I enter a position. Some daytraders are so enamoured with level 2 they can't cope without seeing the depth behind the inside market, but in fact you often get a pretty good idea what is there by noting quote sizes as the market moves on the NYSE. For example, you might see a bid of 20,000 shares just before an uptick of 1/16 that shows size of only 1000. Of course you cannot know if the 20,000 gets pulled down, but chances are it will either move up to join the inside market, or stay firm 1/16 away. With your automated system, you could easily build in a quote tracker that might prove quite reliable. You can get partial fills with NYSE, but the balance of your order stays alive and you usually get the whole thing within a reasonable time. I once got 2000 shares filled in 7 pieces over a period of a minute or two, but I rarely wound up with a net partial. When you do, at least it's in 100 share lots. Dan