People like that steve tvardek. Where did you learn DAYtrading??

lokkeilaw · Jun 2, 2006

I agree that the time and sales is useful after the fact. The thing that matter is the level 2.

2manywhiners · Jun 2, 2006

Quote from lokkeilaw:

I agree that the time and sales is useful after the fact. The thing that matter is the level 2.

Just remember to not place too much emphasis on the size of bids and asks on Level II. And try to pay as much attention to the trade size on the ticker as you are the actual Prices...

VAP or Volume At Price bars can be helpful on 1 minute charts too. Anyone using Tick line charts? I don't but I was curious if others do. Lots of charting systems have them...

foible · Jun 2, 2006

Quote from Babak:

Mav,
I follow you and I agree with what you've written. Just a few Q re terminology that I'm not familiar with. What do you mean when you say the specialist spreads the stock? And what is a 'cleanup print'? Thanks.

During most of the session, orders will go out in nice blocks, but they not all get filled so the trader will end up with an uneven number of shares. When a trader wants to get out entirely, they may batch up all of the shares they hold and dump them to "clean up". I've been told you can spot these prints as they will be large, but of an uneven number.

Is that right?

I don't know what Maverick means by "spreads the stock". Anyone care to hazard a guess?

2manywhiners · Jun 2, 2006

Quote from sappjason:

On a more philisophical note, what will you do if the NYSE moves away from the specialist system and more towards the whole ECN approach? I'm guessing it's kind-of innevitable as technology advances. I do know that many NYSE stocks are also traded on some of the ECNs (such as Island and Archipelago). I guess my question here is: Do you think the ways of the ticker tape readers will be a thing of the past or once you learn this time tested skill, will it always be valuable?

Thanks again,

Jason

Quote from jho:

Just bumping this question back up for Maverick. I am interested in your opinion on this as well. Thank you.

More...

Lots of Nasdaq traders still use T&S. It's different but same.

Babak · Jun 2, 2006

Quote from foible:

During most of the session, orders will go out in nice blocks, but they not all get filled so the trader will end up with an uneven number of shares. When a trader wants to get out entirely, they may batch up all of the shares they hold and dump them to "clean up". I've been told you can spot these prints as they will be large, but of an uneven number.

Is that right?

Sounds about right. Anyone want to confirm this?

Quote from foible:

I don't know what Maverick means by "spreads the stock". Anyone care to hazard a guess?

Yeah, this is what I don't get either. Maybe its listed stock lingo

MR.NBBO · Jun 2, 2006

Quote from Babak:

Sounds about right. Anyone want to confirm this?

Yeah, this is what
I don't get either. Maybe its listed stock lingo

I guess the lingo does typically pertain to listed.

Spreading the stock means the stock may have been $ 44.00 x 44.09 or the like.....you see the spec. re-quote 1x1 on ea side often, and the quote goes to 43.90 x 44.50. The specialist then prints this buyside gap at 44.50 x 68,300 shares or something. It's often a last "gasp" after buying all day.

It was likely the last bit of shares that the "buyer" had yet to buy. He was buying all the way up, and just threw out the last bunch to "clean-up" and round his order out to an even 2 million shares--or whatever he was buying.

LondonUSTrader · Jun 10, 2006

The only way to learn to trade is to trade. To observe the market's behaviour and your own psychological reactions to the market's behaviour.

"You canât judge anything from one trade; after 100, you have a plan. And after a thousand trades, there is nothing you have not seen. Trading involves drawdowns and runups in equity, and you have to deal with both of them to trade.â Tom Rehberger

Now, you have observed and participated for a while you should know two things. What a range day and trend day looks and feels like. You should also have reversal and continuation setups for both of these "market faces".

It requires constant study of the market and yourself.

You need to identify your own psychological weaknesses and come up with ways to react to those so they don't impinge on your profitability.

You need to be constantly thinking about who is the loser on the trade. Is it you or the chap on the other side of your trade?

I am talking about day trading index equity futures here. There's lots of opportunity to make money, but its not easy.

Cheers.

Cheese · Jun 10, 2006

Quote from LondonUSTrader:
.. talking about day trading index equity futures here. There's lots of opportunity to make money, but its not easy.

Undoubtedly true.

However it may be that otherwise I differ slightly. Study of your chosen market plus preparation & planning do not require trading.
Ultimately of course you must trade .. when ready.

I have not done so myself and therefore I do not encourage anyone else to go into battle, get your hands thoroughly bloody and then believe this is the best way to understand the market.
Of course the intensity needed to study a market bar by bar is so important. This is partly about sustained attention adhesion along with your willpower and perception/learning capability which must become very well drilled and trained

Accurate trading is then just the decoration on a cake you made and which you bake perfectly from carefully chosen and exactly co-ordinated ingredients.