Don Do you have to use limit orders on both the buy orders and sell orders to trade the nonnasdaq stocks?
We can use "market orders" but why would anyone ever do that? When you use a market order, you are simply saying "do with me as you please"...and when you fully understand the order flow on the NYSE, then you'll realize that limit orders (even above the offers for buys, and below the bids for sells) work much better and more quickly than market orders. No Difference in pricing anyway, so why risk a market order? On the nasdaq it really doesn't make any difference anyway. Don
Don I don't trade 3 letter stocks, but your remarks interest me and I am thinking of trading them tomorrow at the open which is my main strategy now. I always buy with a limit order on the nasdaq. But I always sell at market because I like to have it punched in on IB before I buy, in case the trade goes against me. Would arca be a better choice to sell three letter stocks at the market?
ADI is a very popular daytrading stock although it's not for the weak hearted. It has one of the highest betas in the nyse, good volume and follows the SOX and the futures
There is never a reason to use market orders on listed stocks. The "clerks" can execute limit orders, and give you the best price, on a timely basis. The Specialist "batches" market orders, and gives you a good price, but it may be seconds later. If you are selling long stock and the bid is 21.40, send a sell order with a limit price of 21.30, and you will likely get 21.40 (or even better with price improvement). As I'm sure you're aware the OTC systems do not allow for that (in most cases, unless routed to a MM firm). The "edge" on the Opening Only strategy is that you can place buys and sells on maybe 20 stocks, just prior to the opening, so that you can get the opening print when the stock gaps. You will be "on the same side" as the Specialist (good side to be on!!!), and then simply trade out of it. If you wait for the market to open, you lose your edge. When there is no "single price" "single market" opening, then you can't execute this play. The AMEX is going to list some Naz stocks, and will be attempting to do the openings.....but until I see how the Amex guys handle this, the "jury is still out" on whether we want to send orders there. So, just envelop a few stocks base on simple FV pricing, and hopefully do as well as my brand new team of bootcampers are doing...first day, all winners!! (They don't know enough to understand that they are supposed to lose sometimes...LOL) Good Luck, Don
just curious. These stocsk see to be rather thick and trade in narrower ranges. I thought this is the opposite of what you want in good trading stocks.. AI am guessing you are not scalping, but holding for many minutes/few hours?
Well these are just a couple of stocks that I trade if the volume/ price action is good. some days their terrible. Im not going to post all of the stocks I trade on ET
every days favorites day trading stocks change because of news. to know the day trading stocks of the day just go there : www.island.com ad click on the left on top list. You will see for the day which stocks are mainly traded by Dt using island in their majority. try before the open during pre market and then 15 minutes after the official open. You get your babies for the day