for all that is viewing this thread, please also view http://www.elitetrader.com/vb/showthread.php?s=&threadid=72210 for discussion of some common tape reading setups that appear often on the listed
For those of us with ADD, is there any way you could break that post down into readable bites? It's really hard responding to posts that have 60 questions in them. Maybe ask them one at a time. Don't mean to be a pest, it just makes it a lot easier. Thanks. "Mav"
No problem, I will break them down to more specific. Your posts are very informative, and I feel like I am absorbing tons of information at once hence maybe my questions are a little cluttered. While I organize my thoughts, can you respond to the common setups that's linked to the other thread? Supposely, the setups are very common and frequently seen on Level II. I do not understand the motives or the process/ "the story" of those and was hoping your insights can make the picture clearer. Thank you in advance.
1. In the point of view of scalping, how will your method of identifying institutional buyer/seller be applied? Most scalpers stay in their position for matters of seconds or minutes tops and some institutional buyers, sellers could be there for hours. 2. How will one profit from buying when the institutional buyer starts buying? Will the price be going up without pullbacks until the order has been filled? 3. I believe what shortseller was referring to was a chaser, where prints are going down and he is shorting the stock looking at size on the offer for exit points. Is this considered an aggressive seller? 4. You say you do not trade the same stock everyday, but also said it's important to get a hold of the charateristics of the stocks and to be familiar with it....are your methods versatile to any stock? You say you trade based on news, upgrades, downgrades, earnings, etc... I personally use yahoo finance, stock research....is that any good?
Maverick, can you elaborate on how to spot the institutional buyer/seller? I know you have mentioned about stepping up the bid or stepping down the offer, but I was not able to put everything together into a clear picture. How does double prints play into this?
I did catch that, or at least what I can at this beginner level I am in right now. The bid/offer steps up, he would always be there with some little shares and keep buying, selling. The thing is that what are the characteristics regarding quotes and prints that can clue you in on such action as it is subtle/not clear to me at this moment.
I would be interested in hearing from anybody trading Maverick's style of using tapereading to hold for points at a time in the current market. All the NYSE tapereaders I know of are aiming for much smaller moves these days. If anybody is holding for points, I'd like to know what keeps them in a stock that retraces 20-30 cents and what would get them out if not the drawdown itself.
exactly. I would like to know as well. I mostly scalp but Maverick's tape reading method seems to be more concrete and I definitely like to know more.
We don't go for points or at least the guys in my group. We scalp for as much as we can get. Usually this is like 5 to 50 cents. I dont know anyone who holds a position for more than 30 minutes and even that is too long. Most guys get in and out in a few seconds to a few minutes. My mentor, Steve Tvardek, is a master of the few cent scalps. He is in and out sooo fast. He is a true grinder. He has always taught me to take smaller profits rather than sit through 20 cent squeezes, especially when your not certain of a strong buyer/seller. -spxdes