Best Strategy on QQQ

bora:

better ask your broker if you can buy one on the bottom and flip two on the top to close the long and be short simultaneously -- it varies by broker i think.

I asked IB a long time ago on this and i seem to remember (but don't trust my memory -- ask them yourself!) you can't double up to flip a short but you can to cover and establish a long.

I have talked to other traders that work through different brokers and trading platforms and the rules are different for them

Again -- i believe it is broker/platflorm specific and you will have to investigate.

regards/greg
 
bora,

I don't know about other brokers, but with Cybertrader you would have to first close your short, then in a separate order go long. They don't allow a single order to "flip" a position. In contrast, with Realtick they do allow it, so one order would do the trick.
 
I don't think there is a big advantage in being able to short the Q's on downtick when you do so you'll probably have considerable slippage especially in a quick selloff. And then it will bounce back a little it's like the futures I would not try to short weakness. If you trade size the futures are much better the spread is comparatively much smaller.
 
Originally posted by bora
Is it possible to buy 2000 (1000 buy back short and 1000 long) shares, although i have the money for 1000 shares in my account (without margin).
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FWIW, with Datek you can flip the position in one order, but no, your order cannot exceed your current buying power.

- jaan
 
Kicking

If there is a quick selloff, Id rather be trying to get out of the Q's than anything else. I've actually been pleasantly suprised by how little slippage I get but I don't fool with the specialists.
 
I think everyone agrees that using ISLD to trade the Q's is most advantageous....recently Island traded more shares of the Q's than AMEX did one day! Having said that, there is no slippage when you trade with ISLD since you always have a limit order. You either get it filled or you don't.

RE: going long to short and vica versa, in general the issue is more when you sell to cover a long position and also want to establish a short at the same time. THese sells must be coded separately as the short is a type 2 trade and must occur in a margin account (regardless of account equity due to borrowing of shares) while the sell of the long can be in a cash or margin account. However covering a short and establishing a long with one order should not be an issue and many brokers allow this.
 
I was referring to slippage as the distance from the price at which you decide to get out and the actual price you exit. Most of the time it is zero. In a fast market it may be a few cents.The single biggest problem I had when I was trading stocks was getting out when the bottom fell out. All of the bids on isld would disappear in a flash and the mms were protected by their small size and you would be down a point or two before the dust settled. I finally got tired of it and switched to the Q's. The most I've ever lost in a freefall was .20 and that was the exception. Most times it is more like .05. Once I became confident I could get out when I wanted too my trading immediately improved. The fear of getting burned can really inhibit you. Of course I was foolish enough to be attempting to scalp on a 56k connection. Those guys with T1's probably get out a lot faster.
 
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