any recommendation about thick stocks for new traders?

We have our "boot campers" choose about 15-20 stocks (simply from 3 or 4 sectors, large cap, high volume NYSE companies)...for their "opening only" orders each day....same group every day. Then from that group, the find that they develop a good "feel" for a couple stocks, and use them as their "bread and butter" (primary) stocks to trade...day in and day out.

Filtering is not a good idea, because you end up playing in some else's "poker game"...sure the stock may look good on a filter, but you will trading against those who trade it every day....kind of tough....

Hope this helps...

Don
 
Originally posted by Avalanche


IMO, You don't want stocks that are too thick, even if your new.

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what??? Every day I personally trade a little over 1% of the volume of a 10M shares/day nyse stock...my style is to scalp (obviously) and I could never succeed without high liquidity. There are many reasons to trade thick stocks, but the most important is that you can usually get out quickly if your trade goes against you...stocks like HI or COF will often freeze the book, not letting you have any stock when you need it.
Look for stocks that have a great deal of arb activity, like C (which I usually trade 100k shares per day).
 
Originally posted by nitro
IMHO, I would trade GE during dead zone.

I don't know why no one ever recommends this - I can't think of a better way to learn to trade. All the "good habits" will be formed here...
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Yes! GE is great: over $20, extremely liquid, and the specialist doesn't need to play games to make a market.
 
Originally posted by schonfeld_trade
Thank you very much. hehe. Yeah, they do teach me. But I just don't feel enough for me. :)

Thank you very much for your suggestion. COF is a nice stock in my mind, but last time, Nitro told me that the specialist is a seven head monster. So I am a little bit scared. But as I watched, seems that the spec from HI is worse than COF. COF is moving more smoothly. How do you think about it.

I don't like brokage because the move is too fast. Before I get used to the system, I wanna step out of brokage stocks even if they might have a good move.

I wanna ask you some stocks if you don't mind:
C, AIG, XOM, GM, NOK, VZ

Please tell me more if you guys can.
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In my opinion, those stocks are very difficult to trade for a beginner. They are extremely thick, and very hard to get a read on. A beginner should not focus on those stocks, especially if you're learning to tape read. The action is so fast, and the prints are so large, that you're only able to focus on one, maybe maybe 2 of those stocks. So you're only really learning how those one or two stocks move and act, and not building a general base for all stocks.
 
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