Discussion in 'Trading' started by 10K, Jan 23, 2002.

  1. 10K


    Why do the "pro's" prefer trading the NYSE over the NASDAQ?

    Do they know something we "retail" do not?

    Is it that the NYSE (in general) can be predicted with more certainty?

    Who has some insight?

    Thanks in advance.
  2. The fills are better on the NYSE if you make a mistake trading NASD you cant get out until the end of the move. People are fighting for a fill. On the NYSE the specialist fills all the order in the order the are placed on the books. The bottom line is the nyse is a fair market in general. The other thing is stocks on the NYSE have more stable earnings. There is less panic.
  3. This has been discussed pretty heavily.

    For me it comes down to I'd rather read 1 person who controls the stock and really get to know his personality than read 50 guys and try to figure out who has the most orders.

  4. ddefina


    Sure its tough to sell an illiquid NASD stock when the bid is falling but there are many price levels below that you can sell into. And liquid NASD stocks are easy to sell into. Are you saying the Specialist doesn't use market support to fill his orders? He doesn't spread the stock down to where the volume is just like the Nasdaq does? He just takes the loss personally for the good of the customers? I think people that favor the NYSE can't trade the NASD because their trading system involves reading the Specialist. They then build a case for the NYSE because thats what works for them. Price improvement on prices that are bad to begin with is just a shell game IMO. :)
  5. Trader01


    I agree with the above post. I don't appreciate one person setting the price of a stock. I would rather have a 1000 people set the price. All you hear on this board is that the specialist filled me here and the specialist filled me there and the specialist dropped the bid on me and on, and on, and on.

    When I short a nasdaq stock, I know where I am going to get filled. When you toss a market order to sell a listed stock, its like, hmm...I wonder what he(the specialist) is going to do to me.

    The specialist, in my opinion, is just a relic of the antiquated NYSE good old boy country club. The specialists days are numbered.
  6. This debate will go on forever...good traders can make money on either market, but most do better on the NYSE because there is a marketplace, and even though there is one Specialist, there are thousands of orders...and price improvement is primary to our traders....and doing opening only orders is how our new traders make their first $10K month or so while they are learning how to trade.

    I say trade wherever you like, just be sure that you have more money at the end of the month than when you started.

    Good Luck!!
  7. I trade AMEX, NASD, and NYSE I find that trading the NYSE is more forgiving. I make money in all the markets they all work the same but on the NASD when I make a mistake I pay for it dearly. One of the things about the NYSE is when the specialist spreads the offer up all you have to do is offer below and he matches your order with a block trade. On the NASD when the stocks rips I offer out and for the most part I get an instant fill but usually watch the stock go higher. The NASD you have to provide liquidity if you don't your are going to compete for a fill with every other trader. On the NYSE the specialist is usually ahead of everyone and lets you out for a small loss.