I BELIEVE TRADING INDIVIDUALLY IS TOTALLY DIFFERENT THAN TRADING FOR BIG FIRMS. IF ANYBODY OUT THERE WORKS FOR TRADING FIRMS....WHA TYPE OF INFORMATION DO YOU GUYS HAVE ON HAND TO HELP YOU TRADE.
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Wondering How Big Firms Trade
- Thread starter ENTREPRENEUR
- Start date
Keep in mind that a good portion of the trading performed by large firms is on the behalf of orders from institutional investors.
The big firms are focussed on beating the VWAP (Volume Weighted Average Price) and other bench-marks when filling large orders for institutional clients. The traders at large firms will use routing (Exchanges or dark pools), automated algorithms, and other methods to divide-up and execute the order at the best pricing possible. Most traders are working to fill orders from mutual funds, large hedge funds, corporate stock buy-backs, and other activities that involve a large number of shares that are traded over a period of time.
In other words, the traders at large firms are normally focussed on very different expectations then individual traders (who are just looking to buy low / sell high in a short time frame).
It is true that large firms do trade on their own account, but even then due to the size of the orders their focus varies from most individual traders.
Hint: Fully understand how these traders behave and you will gain an edge in the market
- Greg B.
The big firms are focussed on beating the VWAP (Volume Weighted Average Price) and other bench-marks when filling large orders for institutional clients. The traders at large firms will use routing (Exchanges or dark pools), automated algorithms, and other methods to divide-up and execute the order at the best pricing possible. Most traders are working to fill orders from mutual funds, large hedge funds, corporate stock buy-backs, and other activities that involve a large number of shares that are traded over a period of time.
In other words, the traders at large firms are normally focussed on very different expectations then individual traders (who are just looking to buy low / sell high in a short time frame).
It is true that large firms do trade on their own account, but even then due to the size of the orders their focus varies from most individual traders.
Hint: Fully understand how these traders behave and you will gain an edge in the market
- Greg B.
I AGREE THAT BIG FIRMS USE DIFFERENT TACTICS.....BUT WHAT ABOUT FIRMS LIKE SWIFT TRADE ....DONT THEY USE A SQUAWK BOX AND SIZES OF BIDS AND A TREND CHART....WHAT I'M WONDERING IS THESE PEOPLE THAT START TRADING FIRMS....WHA TYPE OF INFORMATION THEY USE ON DAY TO DAY BASIS.
Quote from ENTREPRENEUR:
I AGREE THAT BIG FIRMS USE DIFFERENT TACTICS.....BUT WHAT ABOUT FIRMS LIKE SWIFT TRADE ....DONT THEY USE A SQUAWK BOX AND SIZES OF BIDS AND A TREND CHART....WHAT I'M WONDERING IS THESE PEOPLE THAT START TRADING FIRMS....WHA TYPE OF INFORMATION THEY USE ON DAY TO DAY BASIS.
Big firms have all kinds of tools individuals like us don't have access to. That's why I stick to Penny Stocks--Lots of suckers, much easier
Quote from ENTREPRENEUR:
I AGREE THAT BIG FIRMS USE DIFFERENT TACTICS.....BUT WHAT ABOUT FIRMS LIKE SWIFT TRADE ....DONT THEY USE A SQUAWK BOX AND SIZES OF BIDS AND A TREND CHART....WHAT I'M WONDERING IS THESE PEOPLE THAT START TRADING FIRMS....WHA TYPE OF INFORMATION THEY USE ON DAY TO DAY BASIS.
They just trade off the prints and open book. My firm trades like that, too... our edge is that we all look at stocks and we share information and we all know what strategies work and what doesn't and we know how to usefully call out information quickly... but the information we use is just order flow and where the stock is printing, and that's enough to be consistently profitable on a daily basis.
I BELIEVE THAT THE KEY TO SUCCESSFUL TRADING IS TAKING A SCREWDRIVER AND REMOVING THE KEY JUST BELOW THE TAB KEY.
That's how the "big firms" do it, anyway.
That's how the "big firms" do it, anyway.
Quote from TimothySykes:
Big firms have all kinds of tools individuals like us don't have access to. That's why I stick to Penny Stocks--Lots of suckers, much easier
Timothey Sykes. Will you PLEASE stop hawking your frigging book on every frigging thread in this whole frickin' forum?? I believe that's called SPAMMING, and I don't care whether you're an "ET sponsor" (whatever that means) or not, to the best of my knowledge, this isn't a free advertising site for self-promoting assholes.
When it comes down to it if youâre with a really big firm itâs mostly about order flow. Sorry but small firms and individuals just donât get to see the order flow thatâs out there. For many years the firm that did the biggest volume on the nasdaq was happy if their trades were the tiny of tiniest winners because the soft money and payment for order flow deals they had in place was where they collected the profits. What individuals donât get are those deals and the people who execute their orders get those deals and yes even the direct access guys get em.
When you say âtradingâ is not always about directional trading, huge volume is in stock index futures arb ( at least 50% of the big board volume every day, or other kinds of program trading ).
When you say âtradingâ is not always about directional trading, huge volume is in stock index futures arb ( at least 50% of the big board volume every day, or other kinds of program trading ).