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GE pattern
- Thread starter exce26
- Start date
A big cap like GE has many factors in it. GE has the largest capitalization of any corporation in the world by far. It is the largest weighting stock in the S&P 500. Therefore it is suscepitible to program trading. A stock like GE is very liquid. Basically, all day institutions are throwing block trades back and forth. You have to remember the specialist has power but he can not move a stock like GE at will. But he does participate in it especially now with decimals.
If you look at a thinner stock you can see a specialist play his game. In a thin stock the specialist is almost always on the bid, the offer or both. This is when you will see if he plays games. In a stock like GE, a bid or offer for 50,000 shares is not a big deal. BUT if you see a bid like that in stock that only trades 200,000 shares a day than it means something. So a stock like GE is basically in a league of its own. It is not the same as a smaller stock like EME (small cap) or BRL (mid cap). There are hundreds of good listed stocks to trade. In my opinion GE is not one of them. You have to remember that when you order for 500 or 1,000 shares pops up on his book, he doesn't give as shit about it. So in my opinion if you just starting to trade listed stocks...find some Mid-caps over $25. They are good to learn from. Then when you see how the specialist tries to deceive, you can move on to Big-caps.
Chris
If you look at a thinner stock you can see a specialist play his game. In a thin stock the specialist is almost always on the bid, the offer or both. This is when you will see if he plays games. In a stock like GE, a bid or offer for 50,000 shares is not a big deal. BUT if you see a bid like that in stock that only trades 200,000 shares a day than it means something. So a stock like GE is basically in a league of its own. It is not the same as a smaller stock like EME (small cap) or BRL (mid cap). There are hundreds of good listed stocks to trade. In my opinion GE is not one of them. You have to remember that when you order for 500 or 1,000 shares pops up on his book, he doesn't give as shit about it. So in my opinion if you just starting to trade listed stocks...find some Mid-caps over $25. They are good to learn from. Then when you see how the specialist tries to deceive, you can move on to Big-caps.
Chris
I met a guy who call him self as a prfessional trader.
He trades only GE for 2years in a trading firm. He makes about $20,000 profit per week. Yes, only trde GE, not other stocks. How can you make so much profit? His answer was, He finally figured out "GE specialist pattern". Now, after 2yr GE trding experience, he can immediately notice the specialist is on vacation or not, he is on break time so some clerk is excuting GE now or not, etc. Impressive answer....Any comment on this?
He trades only GE for 2years in a trading firm. He makes about $20,000 profit per week. Yes, only trde GE, not other stocks. How can you make so much profit? His answer was, He finally figured out "GE specialist pattern". Now, after 2yr GE trding experience, he can immediately notice the specialist is on vacation or not, he is on break time so some clerk is excuting GE now or not, etc. Impressive answer....Any comment on this?
Bryan Roberts
Guest
absolutely agree with the above post. with the specialist system you are not trading against the crowd but rather against one person who holds all the cards. short term trading is dependent on knowing the specialist very well. longer term is different, but if we are talking about scalping, i.e. 15 seconds to a couple of minutes, then one must recognize the specialist's tendencies/patterns. you can be right all day on a stock but if the specialist won't fill you when you're right or won't cancel you when you're wrong you will lose money. some of these guys are pretty honest but there are some i absolutely will not trade. by the way, they have 2 minutes to fill a mkt order....that is an eternity in this game, that gives them plenty of time to decide what to do with your order. as far as bid and ask size goes, i never believe what they are showing....in fact usually the opposite. the key is to recognize the pattern of their lies. i hate to sound so cynical but this just happens to be my experience. good luck.....
p.s. don't forget they trade with the same brokers at their post day in and day out, maybe even play a little golf on occasion. so who do you think is going to get filled first????
p.s. don't forget they trade with the same brokers at their post day in and day out, maybe even play a little golf on occasion. so who do you think is going to get filled first????
Obviously this guy is very successful with what he is doing, since he is making aroung a million a year. Some great advice...listen to this guy. Maybe you could learn some of his tricks. Since you say he is averaging $4,000 a day trading GE, he must be taking large positions. That is one good thing about supercap stocks...very easy to take large positions. A few guys on my desk trade large cap stocks...They take large positions (5000-10000 shares)and scalp them all day. But their trades are based on the futures and ticks. They try to make a quick 20 cents. I also know some guys who trade only one stock and they are very successful. My friend used to only trade GLW when it was a $300 stock. To me that shit is crazy. The stock had $2 spreads all day. I believe you can make money trading ANYTHING. There are 500 traders at my firm..and every guy has his own style and his own tricks. Personally, I don't like Large Cap stocks, But they might be perfect for your style. Anyway good luck.
could this be just good old tape reading? I know that there is an incredible feeling of synchronicity that can be achieved after watching/specializing in, once stock. Maybe this is what he's doing.
If it is, you can dothis for any liquid stock. I agree with others that GE is in a league of its own!
If it is, you can dothis for any liquid stock. I agree with others that GE is in a league of its own!
You really don't have to be that good to make 4k a day. That's basically 10 dime scalps on 5k shares, or 5 quarter scalps on 5k shares. Not really that hard. If you figure a guy out, you can bank. The thing is that you must watch him for months/years until you get his read. As I have said before, I usually bat 95% with over 100 scalps this year already agains MO specialist 2-4k shares each scalp. I look for .1-.4 a trade. I can do about 85% on dis, looking for quarters. It just takes time to learn the man. I find that I can usually be more profitable to just play the news stock de jour, but I know I can always come back to these 2 if im in a slump, or the day is slow. If you really want to learn to do this, just choose something liquid, and watch it for a few months. The thing Is you can go hours/days without making a trade and waiting for your moment. It gets boring.