It's this kind of stuff that keeps me scalping the Naz! A lot of bullshit goes on with the Level II, but at least I don't feel like one indivdual has all the contol (even if some MMs do from time to time). I have done some modest NYSE trading but I definitely prefer the Naz, maybe I need some more education about trading the NYSE.
Do you guys that watch these specialists use the 1x notice any pattern that make for worthwhile trading strategies. For example, if there's big size on the offer, then it goes to 1x1, does anything predictable happen next, like he does a big print on the bid or below?
I think a lot of that depends on the specialist and how he works the order flow for his stock. The big advantage to trading one or a small basket of listed stocks is that you can learn the patterns of a single person, which tend to be repeatable. For example, in one of the stocks that I trade nearly every day, the specialist always shows me when I'm inside bid or offer. With the stock in the above example, the only time he shows me is when a fill would go against me right away (he knows where the stock is about to go). When I see this, I immediately cancel the order. Another thing to look for is what happens after he's stopped the tape for a while. Usually he's dealing with the crowd around the post and is about to do a big print, which could mean a quick jump in the price. Sometimes they'll show 1x1 and freeze the tape when they are busy with the crowd and don't want any other trades going off while they are putting together a block trade.
Exactly. P2 keeps a very detailed log detailing the behaviour of individual specialists, how they run their order flow, and general tendencies they have. I'm sure this is a big benefit, but the observations take time and patience to acquire. Open Book, which I have not yet had the opportunity to see, will not really change the game much IMO, as the specialist will still exert his or her will over how the order flow is handled. It helps to know the Mind of Beast, er Specialist.
When they put such a trade together, do you ever notice that it's significantly away form the Bid/Ask, and that if your order was hanging around outside, you could get filled then turn around and cover it to make a quick scalp, or do you find that it just keeps going in the direction of the print?
P2 <may> be "pretorian2" one of the many ET posters, at least in the chat room during trading hours we refer to one of the posters as "P2", it may be a reference to his trading style and keeping a very detailed trading log. Of course I may be totally wrong here too...just trying to help. Good trading all.... mrktwiz
Did you ever play in Binion's World Series of Poker and win it one year? If you don't want to reply I understand, I just remember (I think??) reading about a trader named Cash winning that tournament. Good trading all... mrktwiz
I'm p2, nuff said... lol ---------- Honestly though, I do keep a running book of what every post does. These guys always repeat. Just look for the patterns. Most importantly I think is to just learn with guys to avoid. Some are just way too good and they keep their markets too thin.
Is the specialist who manages a given stock a matter of public record? I don't care about their names but can I find out, for instance, the specialist who has TXN, what other stocks are also at his post? I went to NYSE.com but was unable to find any specifics. Thanks. Swing