Adapting to the Hybrid
- Thread starter JGTrader
- Start date
the days of scalping 5K or 10K lots to make 25 cents are over.
well you could still try and do it but if you wrong, you are going to get ass raped.
i am holding positions longer and sticking to my original entries and exits so i catch bigger moves. more 30-40 cent moves rather than 10 cent moves but i find it too thin to take more than 500 shares most of the time.
well you could still try and do it but if you wrong, you are going to get ass raped.
i am holding positions longer and sticking to my original entries and exits so i catch bigger moves. more 30-40 cent moves rather than 10 cent moves but i find it too thin to take more than 500 shares most of the time.
When a similar situation happened to me in fdx once, my mentor said that the specialist CAN do that to me because the price of the stock is too high and screwing me for 40 cents is not that big of a deal and that they wouldn't cancel the order unless the trade was off by 2% of the market value of the stock. For ex. if agn was at 118.60 and I got filled at 119, then that's tough luck because the trade was not off by 2% which is $2.37 (.02*118.60). In other words, if he filled me $2.37 higher than 118.60, then I can get the trade cancelled. This is what I was told. So I didn't even bother to talk to anyone about this agn trade. Just swallowed the humiliation and moved on...
Exactly, but the problem is that you cannot expect 30-50 cents on every trade. I tried doing this and a lot of 200 gains end up at 200 losses. I just find it easier to go for small moves 95% of the time and then go for the home runs once in a while. But of course the key is to catch the right one for the home run trade. If you don't, all your little 200s would be gone in a flash.
I think that wasn't necessarily the specialist, it couldôve been one of his buddies at the floor...Quote from Scalper007:
LOLThats what it seems like.
I placed a market order for a mere 500 shares for agn once and he spread up and filled me immediately 40 cents above what he was showing initially and then comes back down as if nothing happened. And I'm sitting here going thru time & sales unsuccessfully trying to make sense of it.
Goldman Sachs is making a killing. The specialist are milking the rest from what's left of the cow.
Haven't you all figured it out yet? I guess old habits die hard.
It's rigged, purposely rigged against the daytraders, who have no lobbying power whatsoever. The computers beat you on speed and fake outs (GS does have order flow info), the specialist perform their LRP tricks. Whatever is left, you all fight for between yourselves. Not only has that piece of the pie gotten smaller, but there are way more of you than before.
Stay out of the fire, stay away from the noise. Swing trading or swing investing has been doing just fine. Nice set up in MAG lately, great for multi day while horrific for intraday.
Or better yet, look at new markets. The smart money has left these equities years ago.
Haven't you all figured it out yet? I guess old habits die hard.
It's rigged, purposely rigged against the daytraders, who have no lobbying power whatsoever. The computers beat you on speed and fake outs (GS does have order flow info), the specialist perform their LRP tricks. Whatever is left, you all fight for between yourselves. Not only has that piece of the pie gotten smaller, but there are way more of you than before.
Stay out of the fire, stay away from the noise. Swing trading or swing investing has been doing just fine. Nice set up in MAG lately, great for multi day while horrific for intraday.
Or better yet, look at new markets. The smart money has left these equities years ago.
Many of our traders have programmed their systems to alert at any sweep, take advantage at the (near) top or bottom of such sweeps, seems to be working.
Very little specialist intervention, not many "Slow Bid, Slow Ask" bells going off.
The Pairs traders are estatic, they can get in and out exactly at their predtermined layers.
Scalpers are having a bit of trouble adapting so far.
Some are using "TapeReaderPro" program to alert when paramters are set off.
All in all, since volume and proftis seem to be up (still a small sample), looks ok so far.
(I never thought I would like the changes, so it goes to show, you can never tell).
I'll be curious to see what happens when the uptick rule is gone away with, and the NMS rule is kicked in all the way.
2.5 cents from me....
Don
Very little specialist intervention, not many "Slow Bid, Slow Ask" bells going off.
The Pairs traders are estatic, they can get in and out exactly at their predtermined layers.
Scalpers are having a bit of trouble adapting so far.
Some are using "TapeReaderPro" program to alert when paramters are set off.
All in all, since volume and proftis seem to be up (still a small sample), looks ok so far.
(I never thought I would like the changes, so it goes to show, you can never tell).
I'll be curious to see what happens when the uptick rule is gone away with, and the NMS rule is kicked in all the way.
2.5 cents from me....
Don
What's the one good thing about hybrid? INSTANT FILLS. How come I couldn't get that today in COO? COO is a hybrid stock. And the specialist is still holding my market orders just like in the old system. Did anyone else see this nonsense? The stock opens up at 43.25 and I send a market order out to get what's on the book, and my order is held and it is filled at 43.50. The ecns are trading at 43.70 now and I have an offer out at 43.74 on arca. A second before I could get hit, the maniac prints again at 43.50 and the ecns drop their bids and I go market to get out. The maniac freezes at 43.30 for a while and fills me at 43.20. While I was trying to get out, there were .40 and .45 bids on the book. Why didn't I get it? The hybrid is a joke fellas. Its hybrid only when they want it to be hybrid. It seems like when the stock has special events like earnings, it starts trading the old way under the specialist's control. Maybe someone else who traded COO saw something different.
i was long coo with 400 shares, got in no problem exactly when it begun rallying hard. out no problemo as well, all with lmt: in at arca trough smart and out ideal. was up a small fortune at a point, considering the tiny size..more than 600 bucks...too bad i gave back half the profits. but yeah no problem to get in and out...crazy movements for sure, very wacky.
Since COO is a $40 stock, I am sure the LRPs are like .20 so if its trading like it did today (based on your explanation), its def going to be hitting the LRPs quite often and therefore back under specialist control. I dont know for sure but thats my guess.