Trading based purely off Nasdaq L2.
- Thread starter momotrader
- Start date
this is true, particularly, when a number of traders in the office are all tuned into one stock, or one stock within the basket/sector. Having other eyes, as it were, analyzing the immediate movements of the L2's or the T&S also helps train all those other eyes who weren't fast enough to see/spot that particular event/situation. Nonetheless, that's the essential reason, for those rare times, that you associate with an office, instead of going it alone in your own HO (home office).
Originally posted by DATTrader
Actually, it was the Watcher that was the original platform upon which the design and features of the others mentioned were (apparently) based. I think that Watcher had been in use as early as the early mid 90's.
Yes this is certainly a piece of it. More specifically, the efficient order entry capability combined with the faster executions and cents/share pricing allows you to "hedge" your entries/exits.
For example if I am long 1000 shares and the upside momentum is slowing or has slowed-but an actual reversal has not taken hold yet, I will begin to post 100 share offers at the offer, then if its taken 1 and 2 cents etc above the offer, and watch the L2 and T/S (with my right eye) carefully to try and gauge extent of the waning appetite of the buyers.
Meanwhile, my left eye is watching the bid side to pay close attention to the size and life expectancy of the bids (are they getting hit/cancelled quickly) and my hands are all over the hit bid hot keys. The moment I decide that I am pressing the envelope, I start whacking a few of the bids for 100 shares each to make sure I get some of the position closed at the current inside bid while the offers are still cooking away.
If I see everything about to go bad, I can hit the biggest bid I can find with a "sell default position size" hot key and close the entire position with one keystroke at which point the open sell orders at the offer prices are automatically cancelled. Obviously, I have these types of keys set for each execution method (SS, Direct ECNS, etc)
By the way the same logic works when opening positions. With decimalization and current market conditions, rarely do I just take an offer or hit a bid with one execution for 1000 shares to open. For longs, I will place a bid or two at and/or below the bid (once I have decided to buy) while perhaps simultaneously taking an offer or two for 100 shares if the stock looks like it is running. If it runs hard right from the getgo, sure I missed some by not taking the whole position at once but that does not happen very often these days. By paring in and being patient with the bids, I can improve my average cost and give my self more room in trade, but I am always just a keystroke away from taking offers if condition warrants. The nice part is that if it does run, I am likely able to get shares at the offer/bid when there is momentum that many others (not trading on one of these platforms) would miss.
PS I was just kidding about the right eye left eye stuff....I can't really do that
man you ought to write a commercial with all that action and spilt right brain/left brain stuff (polite substituted word)...
To get to $1000 a day in credits, you basically have to be able to average about 900000 shares a day in volume using only island bids and offers (or LSPD). You just sit there all day putting up bids and offers and wait until they get hit (this might take a long time). I've been told it requires trading 7-8 stocks at a time, and these stocks got be real cheap and real slow moving. The cheaper the stock, the more the .11c/share island credit is in terms of percentage gains. Also, since all of these stocks are under $5, you can't short em' either. The possibility is there to lose a lot of money if the stocks go against you of course (or make a lot if they're in your favor), but $1000 in credits helps. Oh yeah, you also have to be free of commission charges, so basically you have to be a prop trader to do it. It's not easy to pull off, but there are people making a living trading this style.
When you talk about trading at your firm, do you mean you work for them and trade with their capital?
Or do you mean that you trade in a daytrading firm, and you use your own capital?
BTW is their a way to get a job trading for a Company? and what sort of degree or diploma is required?
Or is simply having real life trading exp good enough?
Or do you mean that you trade in a daytrading firm, and you use your own capital?
BTW is their a way to get a job trading for a Company? and what sort of degree or diploma is required?
Or is simply having real life trading exp good enough?
