Trading the NYSE intraday

C

candletrader

Dearest Brethren,

I introduce this thread to gain general insight into the multiplicity of issues revolved around trading NYSE stocks on an intraday basis.

Please add any general insights that you may have on this theme. I hope that this thread develops into a pretty wide-ranging discussion of the various facets of NYSE trading.

Potential areas of discussion (just suggestions) :-

  • [*]the use of bid and offer sizes in deducing direction
    [*]the significance (or otherwise) of block trades
    [*]lower average volume stocks versus higher average volume stocks
    [*]the efficacy of technical analysis in NYSE trading
    [*]NYSE sector trading
    [*]how specialists shake traders, and how to differentiate a fake shake from a genuine reversal
    [*]preferred price ranges
    [*]ultra short-term scalping versus intraday swinging; high probability versus profit maximisation?
    [*]how decimalisation has reduced the efficacy of certain trading techniques but enhanced the efficacy of other trading techniques
    [*]specialists to avoid
    [*]arbitrage techniques
    [*]trading with the specialist on imbalances
    [*]psychological barriers to making the transition from Nasdaq to NYSE
    [*]if it is the case that institutional activity is more prevalent within NYSE trading, will Summer institutional vacationing lead to relatively better intraday follow-through on Nasdaq stocks this Summer?
    [*]ANY other points of interest relating to the intraday trading of NYSE stocks

With warm feelings of platonic love,
Candle
 
Dear candletrader,

i highly appreciate this discussion as I started off trading NASDAQ but I'm currently working at the shift to trade NYSE hence i feel more attracted to it.

Maybe i may come up with a few very basic questions: How do you, or anyone else route and at which price do you buy or sell.
To clarify this a little, I have the ability to route over DOT so I assume it's the best way to route to the NYSE, right?
2nd let's say you trade a very thinly traded stock which has a rather huge bid/ask spread e.g. 27.5 x 27.68, where would you place your buy order?
Would you buy directly from the ask or place the order above the bid or anywhere between? .. same for selling?
When do you cancel your order and try to get the stock to another price as the specialist won't fill you to the price you earlier tried to get the stock?

ok, now let's keep this thread rollin' ;)
 
Originally posted by Tom Frey
Dear candletrader,

i highly appreciate this discussion as I started off trading NASDAQ but I'm currently working at the shift to trade NYSE hence i feel more attracted to it.

Maybe i may come up with a few very basic questions: How do you, or anyone else route and at which price do you buy or sell.
To clarify this a little, I have the ability to route over DOT so I assume it's the best way to route to the NYSE, right?

There may be liquidity on isld, redi, etc. where you may get a better fill, however, Sending your order through dot to is NYSE is the true marketplace.....You can get a feel for what the specialist is doing or planning by the way he fills you.......with the other ECN's, you'll just get an instant fill

2nd let's say you trade a very thinly traded stock which has a rather huge bid/ask spread e.g. 27.5 x 27.68, where would you place your buy order?

That spread is not huge 1st of all......second, you always want to be taking offers or hitting bids........take the .68 or pit in a bid thats higher.....don't be passive, be the one to take or hit



When do you cancel your order and try to get the stock to another price as the specialist won't fill you to the price you earlier tried to get the stock?

I cancel and bid/offer again depending on what the stock is doing....but I rarel will chase unless the stock is getting ready to really take off.......You will only be able to decide when the situation arises.




ok, now let's keep this thread rollin' ;)
More...
 
Just to start a list of specialists I've already heard about:
GS
IBM
TXN

I will probably be trading listed at a prop firm. I've only traded eminis so I don't know NYSE. Can anyone shed some light on what exactly these guys do that's so bad? Is it the poor fills? Is it the way they run up the price real quick and shake people out? What should we all be looking out for w/ these guys?
 
TXN,GS, IBM, most of the brokerage stocks, they all have pretty nasty specilists.
As is orders held, a lot of shake and bakes (spread'em whack'em) and what a trader friend calls max pain trading, that is if you get in the wrong side at the wrong time, they will not let you out easy, first they will inflict the max amount of pain possible.
 
My impression is that in low volume stocks you can most of the time lean on the bid or the ask and hit the other side
However on large volume stocks, old maxim "trade goes to size" holds true. I mean the specialist is not going to show 10k bid on GE if he does not expect to get filled
IMHO
 
Originally posted by liltrdr
Just to start a list of specialists I've already heard about:
GS
IBM
TXN

I will probably be trading listed at a prop firm. I've only traded eminis so I don't know NYSE. Can anyone shed some light on what exactly these guys do that's so bad? Is it the poor fills? Is it the way they run up the price real quick and shake people out? What should we all be looking out for w/ these guys?
More...

I only trade the brokers when there is an event....even then you have to be wary....I have been squeezed for a point or more with them.......gs seems to be the worst, Mer the best out of the group. IBM, too thick to trade, also too many players involved.....TXN, is wild......he will adjust the quote down or up by wide gaps and leave you frozen as to what to do


In general, I stay away from all of these stocks unless there is an event that is moving them
 
Originally posted by randomwalker
My impression is that in low volume stocks you can most of the time lean on the bid or the ask and hit the other side
However on large volume stocks, old maxim "trade goes to size" holds true. I mean the specialist is not going to show 10k bid on GE if he does not expect to get filled
IMHO
More...

Thin stocks are more transparent than the liquid stocks.....there is usually one player in the stock where as the thicker ones have multiple players.
 
I might switch from eminis to listed. Which stocks should I trade as a newbie? I don't want to be in for a huge shock when I switch. It just seems like there are so many candidates. I thought about using the tonyoz screens to pick a few candidates. Do you guys just use filters to look for opportunities or do you just pick a few stocks and learn the specialist inside out?
 
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