When you log the hours what do you see?
The new hybrid system and scalping equities
- Thread starter FastandFurious
- Start date
When you log the hours what do you see?
Well, I don't really scalp anymore. Only when the situation calls for it, when I do not have a read, $trin indicates a boring market, and there are no longer setups in any of my stocks. My plan is based on the chart, but my read (when I enter and how aggressive the buyer/seller is, where he is resting, etc.) comes from scalping the tape in the past.
It's important to not just focus on size, but on spreads and prints, and even how the ECNs behave on the inside. Moves begin one way when the big fish test the market to see if there is anyone else around who will fill them, and then behave differently when pushing through low volume areas looking for the opposite side. When they end, you often see the size appear.
Even more important is to choose a particular market and focus on it for a long time, until you see how it reacts to its sector and the larger market, and any secondary stocks in that sector. If you were trained to just jump in front of size, you're probably being taught that only so you can rack up commissions and then leave, which isn't in your best interest.
Things start to make sense. When you are new and you see #'s flashing all over the place, its very hard to decipher anything. As you experience the market day in and day out, you start to filter out the noise and focus on whats important. Unfortunately, to know whats important, you gotta make mistakes and learn whats not.
very, very true indeed. I take it you are a position trader? That's where I want to be. I was taught scalping, and thus my personality has somewhat mainainted a fast and furious in and out behavior, but again, position trader is where I want to be. I figure even if one loses on a position trade, it's better or equivalent if you were to pay the commissions that comes with scalping. Again, I have to change my personality and be patient, and of course I am here to make money, and I'll go where the money is at.
mcelitetrader
ET Sponsor
Fast and furious....
A question to determine how you get short ahead of an order that is "stepping down" with the uptick rule.
I find access to shorts using ecn's but i miss the short more often than getting into the action. If you see the stepping down order coming how do you respond to get in once the order wall is showing?
If i am in a short and i see the wall appear then see the order wall stepping down with me then i will hold a position that i may have otherwise pulled. I will hold until the wall starts getting blasted and the usual bounce occurs as all the momentum turns.
In regards to this stepping down ending with the full hybrid introduction...there is no reason for it to end as the orders will still arrive in the same manner.
I have to comment that i like the way price improves are going the way of the dodo. If im trying to bail with a large position why should some joker with an order sitting get my pennies....they were only willing to offer/bid a certain price and that price is the one they should receive. Why should the order not walk the book rather than sweep.
The e-quote system from floor brokers will still offer price improvements but I cannot find info on how much volume will come from this source.
Thanks for the answers....
A question to determine how you get short ahead of an order that is "stepping down" with the uptick rule.
I find access to shorts using ecn's but i miss the short more often than getting into the action. If you see the stepping down order coming how do you respond to get in once the order wall is showing?
If i am in a short and i see the wall appear then see the order wall stepping down with me then i will hold a position that i may have otherwise pulled. I will hold until the wall starts getting blasted and the usual bounce occurs as all the momentum turns.
In regards to this stepping down ending with the full hybrid introduction...there is no reason for it to end as the orders will still arrive in the same manner.
I have to comment that i like the way price improves are going the way of the dodo. If im trying to bail with a large position why should some joker with an order sitting get my pennies....they were only willing to offer/bid a certain price and that price is the one they should receive. Why should the order not walk the book rather than sweep.
The e-quote system from floor brokers will still offer price improvements but I cannot find info on how much volume will come from this source.
Thanks for the answers....
I assume the introduction of the hybrid system there will still be market shorts from institutions, but is it going to be the same? Not sure. Hope someone can give a perspective. Is scalping still worth it when the hybrid market comes? Or is scalping worth it at all?
I get short when the size steps down aggressively as well on ECNs, but what's ironic is that the ECNs behave like the specalist, I get filled lightning fast when the situation is bad, and never gets filled if the situation is good, and results me in cancel the order when the market short is about to be over.
Everyone has different preferrences for activity, holding time, and risk so who knows, you may ultimately fit best with scalping. It sounds like you have a good knack for picking up the tape so far. I just feel like I am hamstringing myself by constantly scanning and jumping in and out. Plus my focus and emotions get all screwed up after taking 8 quick losses in a row. There are a lot of stocks that move over a point a day, and they do often provide recognizable patterns, so you could try a technique like that now if you want. It's just that style of trading requires actively staying out of the market to avoid false starts.
So are you at Assent? Curious to know who your firm/sub-LLC is?
I like to keep tabs on which ones are staying afloat/adapting and which ones focus on training and rehiring.
Yeah, the shorties are not going anywhere, but wait until the "wall" gets lifted. Your "wall" is going to get blasted with the new NX by larger day traders that trade size. This new market will benefit traders that trade more than 1000shs. I know a few traders that get short 5,000-10,000 shs with a 25k shorties steping down and can only NX 1000 shs and go market for the rest, hoping that they will get a piece of the short. Now they will just blast out of there position anytime they want. Watch out.
ECN's stands for Electronic Communication Network, it's not a person. The reason you get lightning fast fill when the situation is bad is because you are provide liquidity to people that want to get out of their position asap. And when the situation looks good everyone is looking to get in to the trade as well. Remember there has to be a buyer if you are looking to sell.
mcelitetrader
ET Sponsor
fast....
If the wall has already appeared then people generally dont buy therefore no uptick occurs......
I was trying to find how you acess shorts when the move is already occuring ? Arca seems to get me in more often than the book.
If i put out 3 orders short ...arca, inet, book my arca offer tends to be filled and i will get partials or nothing on the others.
Also,,,,reading through the HYBRID OUTLINE fromt the NYSE site
http://www.nyse.com/pdfs/hm_booklet.pdf
this is interesting...it seems as though NMS requirements dictate that:
"If an order is sent to the NYSE that would trade- through the top of book at other market
centers, the Exchange will route the amount that is being bid/offer to the away market center
or the specialist algorithm can send a message matching the away market bid/offer.
º In compliance with Reg. NMS, the Exchange will only protect the top of book of other
market centers.
º The specialist can also choose to use the algorithm to partially match the away market
bid/ offer at the NYSE, the quantity of the order that is not matched will be routed to
an away market."
So im reading that if i put out a NYSE order it will sweep to find best prices on all market centres hitting the ECN's for the same order.....A form of SMART order ?
If the wall has already appeared then people generally dont buy therefore no uptick occurs......
I was trying to find how you acess shorts when the move is already occuring ? Arca seems to get me in more often than the book.
If i put out 3 orders short ...arca, inet, book my arca offer tends to be filled and i will get partials or nothing on the others.
Also,,,,reading through the HYBRID OUTLINE fromt the NYSE site
http://www.nyse.com/pdfs/hm_booklet.pdf
this is interesting...it seems as though NMS requirements dictate that:
"If an order is sent to the NYSE that would trade- through the top of book at other market
centers, the Exchange will route the amount that is being bid/offer to the away market center
or the specialist algorithm can send a message matching the away market bid/offer.
º In compliance with Reg. NMS, the Exchange will only protect the top of book of other
market centers.
º The specialist can also choose to use the algorithm to partially match the away market
bid/ offer at the NYSE, the quantity of the order that is not matched will be routed to
an away market."
So im reading that if i put out a NYSE order it will sweep to find best prices on all market centres hitting the ECN's for the same order.....A form of SMART order ?