Cool...so my experience with NYSE is not an isolated case. I've had profitable trades turn to losses on the Exit on NYSE. I guess I better just stick to Nasdaq. -FastTrader
Pretty much my experience. I think a lot of prop firms want to minimize risk and emphasize turnover, so they prefer their traders to stick with slow movers on NYSE. Look at it this way, the firm is getting the same commish, so why would it want the traders to take on extra risk? The trader gets the benefit from the extra risk, not the firm, yet the firm potentially would have to eat the loss.
The NYSE is a much more efficient market place. If there are twice as many sellers as there are buyers, the specialist will move the quote down to accomadate the fair value of the stock based on supply and demand. It doesn't get much better. With nasdaq large caps, getting through even one penny level is like pulling teeth. yes, executions are much poorer on NYSE, but if you get used to it and actually do some research on HOW to get filled, you can make larger per share profits.... and if you're paying commissions, that's a HUGE deal.
There is money to be made in BOTH markets. People have their favorites, which is OK, but saying that "you can't make money" trading one or the other is a stupid thing to say.
agreed, ESC trader..... limiting yourself in ANY capacity is a bad thing for a trader to do. I've seen NYSE traders get hammered on nasdaq, and vice versa... there are truly many ways to make money.
I'm a little confused by you statement that it's better having a specialist to move the price down if there are more sellers than buyers. Wouldn't you rather have the marketplace take care of that as opposed to one specialist who has access to all the other orders ?? I've traded and will continue to trade both, but I prefer the transparency of the naz simply because I can see other orders and don't have to deal with the specialist filling me "if he feels like it " or having one player have that much control. Just looking for some more input, thanks in advance. Vega
The truth of the matter is pre and after hours trades are all OTC. Whether Nasdaq or Listed. As far as which marketplace is "better" during regular market hours, there is no definitive answer. Whatever you are comfortable with is what you should trade. Fast moving naz stocks can indeed be tough to trade. But one difference is that SOMEONE is getting fair fills, even if it isn't you. On the NYSE, with the specialist system, it seems very often that NO ONE gets a fair fill. Personally, I find that trading BOTH is the best way to go. I like to trade stocks that are "in play" and have a lot of volume. If one day I am trading JPM, and Citicorp, and JNJ, then that day I am a "listed stock trader". The very next day, I may be trading only nasdaq stocks. If internet stocks are in play, that is where they trade. Exclusively. Banks and brokers trade listed exclusively. So it isn't the exchange as far as I am concerned. It is the issues that I care about. Peace, RS