Real Pro(who can access firm's capital) prefers NYSE becasue of centralized price system. Small guys like us or even big guys like you prefer NASDAQ because of volatility, up & down movement with speed. 1. Do you prefer NYSE or NASDAQ 2. Why?
I personally tend to prefer NASDAQ due to the reasons you mentioned, namely volatility and powerful moves. I also prefer NASDAQ because I have greater control over how my order is routed and executed (although these days with more ECN's trading listed stocks it's becoming less of a factor). Occasionally I come across a listed stock that is extremely volatile, and I will go for it. My trading style is such that I prefer to trade smaller share lots (i.e. 300-500) and go for larger point moves than large share lots on smaller moves. This also makes it less costly when getting stopped out on a bad trade, as I have less shares to worry about unloading if a trade goes against me. Finally, I also prefer NASDAQ simply because I know how stocks on that exchange behave much better than I do with listed stocks. There are other traders here who will tell you that it has taken a long time to learn how to read a specialist, etc. Meanwhile, I have recognized certain repeatable patterns of movement with many NASDAQ stocks, regardless of the axe or other participants.
I prefer listed stocks because of liquidity. I often take positions of 5-20k shares. I look for halves to whole point moves, but I like to know that if I change my mind, I can bail on the whole position down a dime. The nasdaq has no liquidity, and it'S hard to get a fill at times. Also, it is very choppy as mm's play their little tricks.
Dear zboy2854A, What order route(ISLAND, BEST ECN, BEST, NASDAQ, etc) do you usually use for trading volatile Nasdaq stocks. Best ECN or ISLAND is fast, but it often gives significant price gap(higher than current bid & ask price).
If I'm trading a very liquid stock (which is most of the time) I use BEST ECN or ISLD. I rarely pay more than I wanted to, as there is usually an ECN to grab nearby. Mind you I am primarily doing swing trades now, so I don't worry too much about paying a little outside the best quote (as long as it's not more than .10-.15)
Dear praetorian2 1. Which NYSE stocks do you usually trade?(My guess is GE) 2. How long do you hold it? 3. What does make your decision to get in & out?
I'm with Pretorian2 I trade the NYSE. I need to execute size sometimes and know I can get it done on NY but not always on NASDAQ. This makes the NYSE a place I can control my risk but not NASDAQ. I tend to trade extreme price moves mainly now for this market, especially on the short side. If a stock has gone up 15 days in a row with some volatility I'm looking to short it for a small retracement. One person has a big control of the stock and with 15 days up in a row, guess who is heavily net short a stock? The specialist wants his money back..........and I'll hop on with him. I know traders who trade NASDAQ and others who trade NYSE both are able to profit. There is no holy grail here. They have found something that works for them. I prefer also reading One big trader not 40. Pre like to trade the stocks that have dropped heavily see Great New Pattern 1 & 2 threads (I'll come back and edit in links when I've got time) I like to trade the oppostite of it. I know he like to trade DIS and MO too. It really doesn't matter what. I know guys who have been creamed trading AOL while another makes his bread and butter from him daily. Again you have to find something that fits you. rtharp
last year and years before when nasdaq strongly trended (up and after which it shortly fell around 3000 points) many made lots of money as in trending markets you would for being right. nyse had a similar pattern yet it was and is different, the trend was not as pronounced and strong. It was the difficulty of picking the right stock. You or your fav. monkey could pick a good name nazdaq stock with a nice "tale"/story and or a product. Never mind fundementals and earnings. So it was easy to pick and make the money as a sector go. Now it's a different ball-game. So pardon me from deviating the original post but this what only makes sense to me. I only trade and look at sectors and if they trend (like energy lately, I am in) can't care or bother where the sector is (likely in both but more in NYSE). I suspect we will see a strong trend (one could call it a menia) like the teck bubble of Y2K. It would be more prudent to try to isolate where the bubble will be rather than, see the very pronounced differences in Nasdaq vs. nyse I know - this is not "trader talk" but I am not a *real* trader either.
Have to cast my vote on NYSE for now. Reading one specialist is easier than reading multiple market makers, liquidity, many more sectors to choose from . . . Besides, Nasdaq stocks simply don't move 10-20 points a day anymore, so there you go . . .