Looks like some of my NYSE friends will actually have to learn how to trade once this hybrid market takes effect. This includes the specialists who only know how to rip off orders by excessively gapping the stock for the fill (and to cause panic) then bringing the price right back. This is great for NYSE traders who know how to read the specialist and join in him on the gap fills at the end of a trend. It's time to learn how to trade and read the stock rather than join the specialist in ripping people off.
After the hybrid is implemented, there will be no excuses for their losses. How will traders handle that?
me neither, on da contrary, got a much, much better price on almost every entry and on many exits as well...buyin' da bid is just mandatory when i trade nyse and get improvement from there also.
There is no price improvement if you are a breakout trader. You just get robbed by the specialist holding your market order and gapping the stock against you. Using a limit order, you won't get filled if it's a good trade and when you do you get filled sometimes, you don't want it.
So if the NYSE is getting rid of specialists, does that mean the new hybrid system is computerized like the nasdaq? I'm guessing not as "hybrid" implies something else.
After 6 pages of this thread, a few things are clear. 1) Half the people love the specialist system. 2) Half the people hate the specialist system. 3) The people who love the specialist assume that all the people who hate the specialist "don't know how to trade".
Then you are simply defending your edge rather than the practices & racket of NYSE. I know the mentality, I've said the exact same years ago. It does not make the facts any different, NYSE specialists are licensed thiefs, the whole structure & organization was set up as a swindle. Regardless, specialists are more brutal to daytraders more than any other party these days, so the same edge is also a handicapp. Nasdaq possesses more volume and much greater moves. It has more innefficiencies than NYSE if you look at it from that perspective. The problem of black boxes hits the human limitations on the nose. Speed, Execution, Absense of emotion and greater processing capacity. It is only logical for the transition of human scalpers toward computer scalpers. The racket is changing, it's gonna be the black boxes, mostly run by the big power ibanks that will dominate intraday action. You can join them and compete against them on the same level. Or you can get away from the mechanical scalping and the short term "tape reading" and trade on a different time frame. The specialists have an exclusive risk free & very profitable racket that will be broken up. Even though guys like Goldman have the obvious edge, any random guy can get a real piece of it if he puts in the work.
u gotta be kiddin' me; u are just talkin' trash here; i never had a problem with fills on gappers at the open and usin' always usin' lmt...price improvement also much more likely to get it on nyse than on naz. ever tried to trade upgrades or earnings off da bat or 3-5min after the bell? guess not otherwise u wouldn't be complainin'
I don't understand your Alice in Wonderland post. If you trade hi volume stocks... the Specialist is virtually transparent. Rest assured he's quietly taking your money... while you are publically defending his racket. If you trade lo volume stocks... the Specialist is a direct competitor and adversary. For a few days when a stock gets "mispriced"... I am making a market alongside him... and he wants me gone... or he wants to raise my costs. The Specialist might cost me 10% of fills... and occasionally I pay more or sell for less. Not a big impact on profits... but it's the principle of being cheated every day. rm+
Since when does opening orders have anything to do with being a breakout trader. The Gaps I'm referring to is when the specialist opens the spread INTRADAY and prints a big print with no trades in between. It doesn't allow the smaller traders to get in/out quickly except at the other end of the large spread. When a stock breaks out, I hit the bid or ask and get into the trade. I don't waste time trying to buy on the bid or sell on the ask trying to get price improvement and miss the move. The only time you would get price improvement is when going AGAINST the trend. Breakout traders go with the trend. Sorry, I don't trade afterhours. Trading with no liquidity is stupid. Good Luck with the New Hybrid System. It'll help weed out the wannabe traders.