nasdaq vs nyse(important...too me at least)

Discussion in 'Trading' started by nwbprop, Oct 31, 2002.

  1. A trainer is supposed to train you in the morning, night or both. During the day, the trainer should be letting you know how things are trading, and what methods are working and not. At times if you have a question about your current position, the trainer should quickly glance at the stock and give you his opinion if he can. For example, I've traded most of the stocks in my universe of stocks that I trade, so most of the time I can look at a stock real quick and let the trader know what I think. If I don't, i say so, and review the trade later with them to see if they did the right thing.
    #11     Nov 1, 2002
  2. They really can't stand in front cause the specialist will eat them alive if they're trying to get in front of you on the wrong side of the trade. It's great to watch the tape at times when someone tries to bully the specialist, and the specialists will just sit there and take it for awhile, and in one swoop make them pay, pay pay!!!!
    #12     Nov 1, 2002
  3. nitro


    That is slightly inaccurate - size takes precedence over time in queue.


    #13     Nov 1, 2002
  4. Nitro, you're absolutely right. Only with the NX is it true first come first serve. With market and limit order size would take precedence. With market orders, even if your the first one to market, but several other people follow, if there is not enough size on the bid or offer to fill everyone, the specialist has the right to sweep everyone to a higher or lower price. Everyone once in awhile if he's really in a good mood, he'll give someone the size on the bid or offer, but as we've all learned, that doesn't happen very often. With NASDAQ, you can just sweep all the bids or offers to get out without interference.
    #14     Nov 1, 2002
  5. NASDAQ is a more liquid market place - its close to pure unmanipulated trading as you can get trading equity. If you're good at recognizing the patterns: NASDAQ is better.

    NYSE has specialists who can do whatever they want. If you learn what they do, and what the big boys do, you can be profitable. But that involves relying on the specialist. Since specialists are people, moods change, incentives change.

    Also, it is my belief that NYSE will become more and more electronic with time, like NASDAQ. In our age of technology do we really need people running around the pits like crazed monkeys screaming and the head ape (specialist) making the call and making the spread?
    #15     Nov 1, 2002
  6. Tea


    What is this Alice in Wonderland or NYSE promotion night?

    If you compare apples to apples, stocks with equal volume, the spread on a liquid Nasdaq stock is always tighter than on a equally liquid NYSE stock.

    I'm not talking about the spread that they flash for a microsecond at the NYSE, but the actual traded spread for 200 to 1000 shares.

    I don't mean to be the turd in the swimming pool, but all this talk about NYSE stocks having tighter traded spreads compared to equal volume Nasdaq stocks flies in the face of what I have observed and experienced.

    Madhatter, explain yourself.

    #16     Nov 2, 2002
  7. TG


    Why either or. Have a core group with some in a few main sectors on each and go where the action is at the moment be it short or longer term. More important to me that sufficient volume be present and that intraday trading patterns on my stocks be resonable and not too random.
    #17     Nov 2, 2002
  8. i think the nyse has wider spreads than most naz stocks that sometimes stay a penny spread all day.the wide spreads on nyse can be a good thing if used correctly.
    i switched from naz to all nyse a few months ago mostly because of don brights and others comments on elite and like it much better.playing nyse isn't as exciting as watching the l2 on some naz crack play go crazy but it is more consistent profits for just takes a different have to pretty much give up chasing news plays because the specialist wont fill you most times fast enough on those.but support and resistance and trend plays work better imho.
    #18     Nov 2, 2002
  9. Would not it be accurate to say that with NYSE you are not only up against the specialist which is bad enough, you are also up against locals, who are right on the floor and in a much better position to make trading decisions then electronic traders. We are at a major disadvantage compared to locals, they have better access to information, I am sure they get a preferencial treatment from the specialist and we are in direct competion with them for the same chunk of money.

    With Nasdaq on the other hand, you are up against a bunch of MMs, none of them have a complete picture of money flow, they compete with each other and they are guessing like we do. It makes it a more fair game. Plus you do see all bids and offers (although the actual size is often hidden), you could see who the players are, the bid/offer depth etc.

    I've read in quite a few publications that MMs do often lose money in their market making/proprietory trading activities. They more than make up for it in trading their clients orders, but this is not our problem. I've never heard of specialists losing money. Given the fact that their loss is our gain and vice versa it appears that Nasdaq may provide better chances.

    I also do not know where the idea that NYSE spreads are smaller is coming from. I've observed quite the opposite. Stocks with similar price/volume have a much tighter spread on Nasdaq then NYSE.
    #19     Nov 2, 2002
  10. this whole nyse vs. nasdaq makes no sense of any kind. The whole advantage of being an off floor trader is being able to take in the big picture and trade whatever the hell you think is the best opportunity. NYSE, AMEX, NASDAQ, ECN's whatever. They all exist for a reason, if one was totally superior the rest would quickly die. Variety is good. Limiting yourself to a particular exchange will not benefit you in any way. People who tell you different are either ignorant or are trying to sell you something. Some firms get better deals on one particular exchange or another and then sell their traders on that exchange. The traders want to believe that their brokerage firm loves them and they repeat whatever they are told. Wake up! If you are trading a particular exchange because your firm pushes it, it is because THEY make more money that way, not you.
    #20     Nov 2, 2002