Games specialists play

Discussion in 'Order Execution' started by chasinfla, Jun 11, 2002.

  1. If you mean by "true opening print" that the NYSE opens at a price and just stays there for the next 30 minutes . . . why would you want to trade that? :)

    In OTC, you get waves and mini-waves of buying and selling; the ride can be nauseating but there's movement, and last I checked price movement was how ppl made money in this game hehe. Opening games on OTC can be extremely profitable, especially if you're not too greedy and capable of reversing your position quickly. The first 15 minutes remains the best time to initiate short positions, as retail still seems to buy the open, especially on news.
     
    #61     Jun 12, 2002
  2. I think some prop firms recommend NYSE because it means more commission dollars for them.Less volatility = smaller moves = more volume to reap the same profit = more commissions for the prop firm.No matter if their customers make money or lose money,Duke & Duke still get the commissions.
     
    #62     Jun 12, 2002
  3. tntneo

    tntneo Moderator

    the NYSE/OTC debate is always hot. I don't get it. While most involved know only trading in one market not the other.

    I used to be a Naz fan (being in IT and all). Truth is specialists are also traders and traders you can work with as opposed to against. Sure if you try to play against them it is much more difficult to make a living, but you don't have to go against them. It's your choice, and imo a straightforward one.

    I think proprietary firms prefer NYSE because of this. You can play with the specialist against the big money and make profits in a safer way than OTC.
    I am sure you can do the same with OTC, but I never attempted it (I was doing only momentum in my Naz time). But not as safely I guess.
    My trading is on NYSE because of this. As a trading corp the risk reward just seems reasonable. Maybe it's because we are not good enough to trade OTC, but we are good enough to make good money consistently, for weeks and months, as a business.

    tntneo
     
    #63     Jun 12, 2002
  4. There are things that go on the floor of the NYSE that one sitting in front of a computer screen is not privy to_On Nasdaq,the fills are faster,the quotes are accurate,the spreads are tight,and there is more opportunity.Forget the fact that there are many MM's involved.If you trade based on price action and what the futures are doing,you should be ok.In the not so active stocks,you can try to ascertain which MM has most of the orders,and base your decisions on what he is doing.On the NYSE,all you're seeing is a bid,an offer,and mostly likely,an inaccurate size.
     
    #64     Jun 12, 2002
  5. most every house needs a washing machine; few houses need a router.:eek:
     
    #65     Jun 12, 2002
  6. I will bite and maybe show my ignorance. What do you mean by every house needs a washing machine but not a router?
     
    #66     Jun 12, 2002

  7. my guess is he's saying that Naz volatility will die out when the fading technology love affair bites the dust

    Whirlpool over Cisco?
     
    #67     Jun 12, 2002
  8. Had a good fill today. Two, I think. Thought I'd post this just to keep things balanced.

    Of course, you know what it means when you get a good fill...
     
    #68     Jun 12, 2002
  9. diapers and food never go out of style.
     
    #69     Jun 12, 2002
  10. Interesting imagery.
     
    #70     Jun 12, 2002