Listed v. Nasdaq trading

Discussion in 'Trading' started by hedgez, Aug 7, 2002.

  1. hedgez


    It seems as though many nasdaq traders are attempting to switch over to listed trading these days. I've been trading listed stocks successfully and consistently for years. I don't know the Nasdaq game, and don't have any desire to learn it. Is trading Nasdaq not working very well lately?
  2. Brandonf

    Brandonf Sponsor

    It really depends on your timeframes and what you did. I don't know very many Nasdaq scalpers who are having a jolly old time, but there are many NYSE ones who are. I think that since decimals came in their edge pretty much dried up, and everyone thinks they want to be an Indian.

  3. I would guess it's the people trying to scalp for .20-.30 each time are the ones getting frustrated, while those that try to ride out the longer trends are doing fine. How many listed stocks can get 8-10% moves up and down in one day?

    Lately with all the hedge funds out there playing in OTC, it's starting to feel alot more like '00, with the moves not as wide but much more controlled; downtrends give way to uptrends and vice versa. Feels like funds are just initiating and closing out large positions without much thought to finesse -- "crowd mentality" is still out there, just in a different form.
  4. trader99


    Yeah, I've noticed that and have been on occassion able to get .40-.50 cents and the occassional $1+ moves in the OTC.

    But I think the vast majority of "hardcore" scalpers would NOT consider .20-.30 a small scalp, since I think they are going for the .05-.10 moves.

    I think if you can get .20-.30cents move consistently and the occasional homeruns of .50-$1 move then you should be doing more than fine.

  5. rs7


    my opinion....

    I myself had never traded nasdaq stocks until '96. Prior to that I traded listed stocks, and options. Then I got involved in SOES trading. So it was a totally new experience.

    I did fairly well. It was an easy time. Just come in an buy Iomega and Sun and Intel and Microsoft and Cisco on every dip. Hold them overnight. Easy money.

    Well those days are over. Now, as has been mentioned, nasdaq traders seem to be gravitating to listed stocks more and more.

    I know several very successful traders that never bothered with the series 55, and have no interest in trading otc.

    Scalpers cannot (IMO) trade OTC in short time frames due in large part to decimalization. And also volatility. Watch Microsoft and tell me how you can possibly trade that stock for an eight. Can't be done. Less expensive otc stocks can eat you alive with commissions..

    But there is no reason not to trade nasdaq stocks with a different approach. Tech stocks are probably the most trending of all sectors. When playing trends, it is hard for me to imagine doing it seriously without trading otc stocks. So it all depends on style.

    What are you trying to accomplish? What is the best instrument to use to achieve your goals?

    Again, this is just my opinion. But for me, on certain days I am more comfortable trading listed stocks very selectively. And in short time frames (scalping). On other days, I want to build positions in a sector. If that sector happens to be technology, I will feel that I am missing out if I don't include otc stocks. Also, they are much easier to exit early if held overnight for a gap opening. I have so often sat with a listed tech stock like LSI or ADI early in the day to see ridiculous spreads, little volume, and specialists that give me a persecution complex (but that's just because they are persecuting me).

    So as I always have maintained, comfort is crucial in trading. If you are more comfortable with listed, fine. If otc, fine. If you can trade both, fine again.

    If you can make money, you are doing the right thing. If not, make adjustments. If listed vs. otc is a consideration, make an evaluation of which treats you better. There are no rights or wrongs about this issue. Just preference and comfort and rate of success.

    Happy trading to all,
  6. I know alot of Naz short-term traders (semi scalp) who are doing real well -- Grossing 40 to 70 k a month - Dont e-mail me and say gross doesnt matter - to these guys it does - they get paid out on gross !!!
  7. Hand down, listed is better. You can't take 20k+ shares of some OTC stock if it only trades 200k shares a day. You're just asking for a world of pain.
  8. Going for .05-.10 for scalps in just about any nasdaq stock will drive you mad -- not enough room for setting good risk/reward on the stops. I would definitely stick to listed if that's the target.

    .20 to .30 comes and goes about every 10 seconds on names like KLAC, QLGC, etc -- definitely not within what you would call a "position" trade.
  9. 20k shares for .10, or 4k for .50, just a matter of what feels more comfortable on the execution side. Me, I trust ECN's alot more than Superdot (perhaps its just my broker). Doing trades the size of 10% daily volume will kill you whether otc or listed. :)
  10. I rutinely do 5-25% of the daily volume of a stock and do 1-3 day swing trades. It's just my style I guess. I trust the specialists much more than some flimsy 100 share island bid.
    #10     Aug 7, 2002