Recent content by DeeMan

Babak: As zippie26 stated there is never an exact time that is predetermined. In the final stages of getting an IPO done, a preliminary prospectus is sent to every Institutional client for their review about a month before the anticipated opening. Next the Underwriters will take the...

Wonderduck: I think you are probably right concerning pair trading solely on an intraday basis. I am with a firm, so leverage is not an issue, but I just don't feel comfortable with this strategy yet to hold for longer periods, especially since my only successes so far have come from quick...

You make a great point here and the only thing that has helped me is that I am very familiar with the pair I am trading, as I have traded both independently of each other every day for the last three months. This at least gives me a sense of whether one is "too high" or "too low" based on how...

Corey: I'm facing the same dilemma as you are concerning risk control. With summer around the corner and the expectation of low volume choppy days, I figured this might be a viable strategy so I have been working on this strategy with one pair that appears to trade somewhat consistently with...

freehouse: Excellent description. I couldn't have described it better myself. nylord1: As far as profiting from this occurrence, unless you have the knowledge beforehand that the print is going up it's not that easy. If the stock has been trending down and then a large print goes off...

I wish I did have more insight in using Level 2 to a more profitable degree but unfortunately I don't (I trade listed stocks exclusively for the moment). What I have found is that I can only determine the VERY short term momentum, which on average will net me only a few cents, and when I am...

Chances are that a Market Maker was working a buy order for an institutional client. The Market Maker will accumulate shares by bidding for small amounts and occasionally taking some offers, and when he accumulates enough (like 30,000 shares) he will now "print" it, meaning he will now sell it...

In answer to your other question - Some firms will advertise volume that they have traded in a particular Nasdaq stock. Most buy side institutional firms use a service (like Bridge, Autex, etc.) to find out who the "ax" is that particular day by seeing who has advertised the most volume. You...

If you want to buy or sell a large block of an OTC stock that only trades 10,000 shares per day you won't just put it out on an ECN. Hitting bids or taking offers would be suicide. The trader would call one of the Market Makers (there will only be a few for such an illiquid stock) and the...

Some Market Makers that work for some of the larger firms do cover more than one stock. There's no need to have a specific person dedicated to making a market in a stock that trades 25,000 shares a day. As far as automation goes, it is not wise for a Market Maker to use any type of...

Bronks: Yes, some Specialists handle more than one stock. Those low volume stocks don't require a lot of attention, so it's usually not a big deal. When there is huge volume on one of those stocks, the Specialist will certainly pay more attention to that particular stock and thus the...

Not quite sure what that is. I never used level 2 to look at listed stocks, and I don't know what #7 is/means. Maybe someone else can help out with that one. It could mean a number of things when a bid/ask disappears and then reappears much lower/higher. When the spread is typical for the...

The problem with the Russell 2000 is that it is a very broad index with many of its components trading very small volume (sometimes less than 100,000 shares). Many of these stocks are driven solely by institutional supply and demand often based on fundamental analysis rather than overall market...

I have been focusing on trading NYSE stocks for the past month and a half and I use IB's TWS platform and have never had a problem with having my bids/offers reflected. It usually takes a couple of seconds, but that's standard for the NYSE. When it takes longer, usually something is going on...

AAA: You just stated exactly what I was thinking. This debate is over an assumed "methodology" which is a very different thing between discretionary traders and system traders. When I system trade (usually some form of swing trade) I have no problem waiting for the right signals and...