Not sure if this is in the correct section, if not Mods please move it as you see fit. I've been trying to figure out how some of the serious daytraders out there trade. Since I work in the industry, I have to trade with either Schwab or Fidelity, I chose Fidelity. That said, I can seem to spot moves well but by the time I go in to my account and put in an order the stocks (or ETF's) have already moved a good amount. Besides that, I always get terrible execution if I do market orders but I don't seem to have many options. So my question is, how do you guys trade and what do you use? My thought is that ideally I would have a hotkey set up to buy/sell certain stocks/ETF's/options and maybe have different algorithems or whatever to either split the bid/ask or just hit the bid. In the meantime, I'm struggling.... Any thoughts would be helpful. Thanks.
Most of the guys who intra-day trade here (which is what you are talking about) use a Depth of Market ("DOM") order entry software like NinjaTrader, Button Trader or Zeroline Trader. Look them up so you can see what I mean.
any "mainstream" broker like Schwab or Fidelity are absolutely not suitable for day trading. You have to have direct access broker with full Level2 (DOM) quotes, there are lots of such brokers, just read http://www.elitetrader.com/br/ I can personally recommnd Genesis (www.gndt.com) more info about their platform http://www.gndt.com/technology/trading.htm http://www.gndt.com/lasermanual/ Alex
Right hand on the mouse, left on the hot keys. Orders executed at IB, charts tracked at Tradestation, Indicies and level two at E signal. Overall best for me after 5 years. Daytrades and scalps. Never use market orders except for hard stops. Limits only for entries.
opinion from other day trader: I never used limit orders in my life, only market orders, "stop market" for entry in many cases
I'm a fairly successful daytrader and you have to have the right tools and support for a decent price to make it worthwhile. It's hard to find all three in one brokerage. I have been trading with Advantage and looking to leave. (just not happy there) Currently I'm looking at Mirus and AMP Trading. They both have great technology in their platforms as well as price however AMP may be a little cheaper. As far as support for daytraders I was really turned off by the brokers (actually I think they are clerks on salary) at Mirus. They just didn't sound confident as opposed to the guys at AMP which were very knowledgeable in trading and platforms, down-to-earth, real brokers!! I think I have found my new home.
You might want to consider whether your "set-ups" are realistically valid. By that I mean, can they be traded in a "real time" atmosphere? I have found that there are a lot of great "mind" trades and set-ups, but a strategy must be executable. It is possible to day-trade successfully at any of the firms you mentioned. Executions are just part of the equation that you need to consider when developing a strategy.
I love my hotkeys and will be moving my equities account to LightSpeed Flnancial out of NYC. I'm told their platform is very reliable, fast and offers hotkey customization. Commissions are good, too, around 7/10 per share.
I was looking to hook up with Advantage, why exactly did you not like them? appreciate your detailed review. Mirus and AMP seem to be perfect but very expensive and only for retail traders. A volume rate say for 2k rt's/month should not exceed 3 n change all in.