Mr. Candle....you are, once again, asking all the correct questions. You have covered approximately 15% or so of the details we "beat into you " during class. You know I'm not trying to sell You a class, but these things take hours to really get into.
We now spend 2 hours on the tape reading questions alone. I will, just for you answer a couple of questions, inserted below. I don't know how to bold only the answers, so everything is bolded. Sorry...
Hope that helps somewhat......this stuff simply cannot be taught via books, etc., and it changes all the time. Sometimes when one wants to become a doctor, medical school is a good idea.
Peace and Love!!
Don
We now spend 2 hours on the tape reading questions alone. I will, just for you answer a couple of questions, inserted below. I don't know how to bold only the answers, so everything is bolded. Sorry...
Originally posted by 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 ...Significant, and changes intraday, by stock, etc. A part of a "larger picture" if you will. Generally if there is a "much bigger offer than bid, then I want to be long (yes long) vs. short.
[*]the significance (or otherwise) of block trades. These are highly significant, since you must be able to recgonize the "players" of the game.
[*]lower average volume stocks versus higher average volume stocks You know the answer here, liquidity is much more important when trading nyse.
[*]the efficacy of technical analysis in NYSE trading Pretty much no time for it, you're busy tape reading. Again, we spend time on which aspects you should focus on (aspects of TA).
[*]NYSE sector trading...(I'd be giving too much away to everyone, and not doing this justice here, sorry).
[*]how specialists shake traders, and how to differentiate a fake shake from a genuine reversal ...1 Full hour on specialists alone, how to read them, how the rules work.
[*]preferred price ranges...(Of stocks,....always $25 -$75 or so).
[*]ultra short-term scalping versus intraday swinging; high probability versus profit maximisation? (BASIC, entry point, Exit Point....the market will tell you when to get in and out...nothing else (especially "predetermined price targets or something equally as foolish).
[*]how decimalisation has reduced the efficacy of certain trading techniques but enhanced the efficacy of other trading techniques
Helped: pairs, size traders, m&A, openings, etc. Hinder (somewhat) strictly "old fashioned" momentum players who haven't kept up with the changes required. A whole new methodology has grown from decimals.
[*]specialists to avoid _ the bad ones
[*]arbitrage techniques Too many, and to different to go into here.
[*]trading with the specialist on imbalances Simply done daily, on openings, closings, and intraday during trade throughs.
[*]psychological barriers to making the transition from Nasdaq to NYSE "You gotta be nuts to trade nasdaq, sane for NYSE" Just kidding guys!!
[*]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? "Institutional vacationing"?
[*]ANY other points of interest relating to the intraday trading of NYSE stocks
With warm feelings of platonic love,
Candle
Hope that helps somewhat......this stuff simply cannot be taught via books, etc., and it changes all the time. Sometimes when one wants to become a doctor, medical school is a good idea.
Peace and Love!!
Don