livingston's class

[trader56]

Thanks again, Livingston!

I'd like to compare techniques and terminology a bit.
In your last post, you said "read the tape..."

On the futures floor, we'd watch:
*Whether the locals had been buying or selling that day or over the last several days
*Whether the commercials had been buying or selling over the same time period
*Size and current status of resting orders away from the market
*Whether the front month in the calendar spread was net bid or offered
*Other, related markets
But mostly it was the order flow and who was doing what.

How does this compare to reading the tape with stocks as you practice it?

 

[livingston1]

its similar... you are watching the order flow, therefore looking for meaning full bids and offers, as well as what the specialist/floor brokers are doing. And finally, you are watching the manner in which the orders get filled. For instance, imagine if a bid walks in to buy 10,000 shares of stock xyz, at $ 58.50, but theres only 1000 shares offered at that price. Now assume for this example that the 10k gets filled in one shot. What does that tell you?? That there is a bigger seller at this level...
I hope this helps....

Quote from trader56:

Thanks again, Livingston!

I'd like to compare techniques and terminology a bit.
In your last post, you said "read the tape..."

On the futures floor, we'd watch:
*Whether the locals had been buying or selling that day or over the last several days
*Whether the commercials had been buying or selling over the same time period
*Size and current status of resting orders away from the market
*Whether the front month in the calendar spread was net bid or offered
*Other, related markets
But mostly it was the order flow and who was doing what.

How does this compare to reading the tape with stocks as you practice it?

 

[trader56]

Thanks, Livingston!

Very helpful, yes, and seems to suggest that a least a few of the lessons of the futures floor MAY have some relevance to stock trading. We would've probably used that big seller that's been uncovered as a leaner, and offered in front of him.

Would love to see a few more of that type of example if you have time!

If you wanted to make it more challenging, you could post scenerios as a "what if," then post the answer the next day...

Just a thought, and thanks again for your time!

 

[livingston1]

hey trader56 its seems that you are truly interested in improving your trading, im going to email you a couple of pages of notes, that I pass out to trainees during my classes, they should be helpful....read thru them and let me know what u think...

Quote from trader56:

Thanks, Livingston!

Very helpful, yes, and seems to suggest that a least a few of the lessons of the futures floor MAY have some relevance to stock trading. We would've probably used that big seller that's been uncovered as a leaner, and offered in front of him.

Would love to see a few more of that type of example if you have time!

If you wanted to make it more challenging, you could post scenerios as a "what if," then post the answer the next day...

Just a thought, and thanks again for your time!

 

[trader56]

I owe you my thanks once again, Livingston - thank you!

Just sent you a PM!

 

[newbie2006]

Hi Livingston ,
I would be interested too to get your notes as I am starting my way to learn how to read the tape, I sent you a PM

 

[FastandFurious]

Quote from livingston1:

its similar... you are watching the order flow, therefore looking for meaning full bids and offers, as well as what the specialist/floor brokers are doing. And finally, you are watching the manner in which the orders get filled. For instance, imagine if a bid walks in to buy 10,000 shares of stock xyz, at $ 58.50, but theres only 1000 shares offered at that price. Now assume for this example that the 10k gets filled in one shot. What does that tell you?? That there is a bigger seller at this level...
I hope this helps....

Can't it also be the specialist filling the order from his own inventory? There could be a seller there if the seller kept stepping down on the offer, in front of ecns, refresh offers, etc... to absorb all the stocks he has to sell.

btw, do you use the openbook?

 

[trader56]

FF,

A good observation, but would it matter if it were a specialist vs some large commercial interest like a bank?

Not saying I know the answer to this, just musing out loud...

Livingston, what do you say?

 

[kjkent1]

Quote from livingston1:

iT TAKES 6 TO 8 MONTHS, FIND YOURSELF A MENTOR, PUT UP 5 K, AND GET READY TO FEEL A LOT OF PAIN, AND IF YOU ARE GOOD ENOUGH, SOME PLEASURE

Find myself a mentor? OK, how about you?

I'm looking for someone who is willing to spend the time to teach me what I need to know. If you're available, please make me an offer.

Thanks.

 

[jmccain]

Make YOU an offer? Shouldn't that be the other way around? What's wrong with you people?

Quote from kjkent1:

Find myself a mentor? OK, how about you?

I'm looking for someone who is willing to spend the time to teach me what I need to know. If you're available, please make me an offer.

Thanks.