Personally, I dont really trade stuff thats "in play" unless its one of my core stocks. I like to trade the other stocks in the same sector(s), I'll let all the other daytraders out there fight over the stock mentioned in briefing.com or the like
how will there be institutional participation on other stocks in the same sector? I understand that it will behave relatively the same... on the market shorts...how do you know that the small size that has been stepping down will not just all of a sudden walk? If they do, how do you know if they will come back as sometimes they will walk, then come back at a lower price level.
If you read my posts, you'll know I am a big proponent of watching price action. That is the key, watch how prices react to certain situations. After awhile, you'll have a very good idea if that 3K share short is worthless or when it will push the stock down .20+ cents. Its all in the details. Any old schmoe can see whats in the open book, but the true keen eye is what finds profitable setups time and time again, even when it looks like nothings going on. I cant tell you how many trades I sell 1000 shares on 900 share short, it goes down .10 cents then the short grows and it goes down another 10 cents and thats when its lifted. I am almost always in when it looks like nothings going on.
If this is the only way your mentor trained you to look for while intraday trading on the NYSE you should seriously consider going to another group Better yet if you been sitting in front of the screen trading all day and this is the only way you see ways to capitalize on moves and make some coin trading then I suggest you return to the 9-5 rat race
hmm...how do you decide under which conditions that the 900 share stepping down is legit? I know you will say by watching the tape but I'd like a more cut elaboration if you don't mind.
It's true that in my firm that's what the atmosphere and most traders were "taught" and it is definitely not true as that's the only way I see profitable trading. Are you a position trader? How do you encompass trading?
I wish I could tell you more than this....but you have to put in the actual screen time yourself to develop that keen sense of "market feel". Its really like any specialized skill, it requires tons and tons of practice and even then you dont do it right every time. The reason I cant give you specifics is b/c I really dont know how to explain it. Something just jumps out at me, probably from seeing 10 of 1000's of similiar situations. And I just react. Once in the trade, I then analyze all the things I look at to determine if everything is in line for good follow through. If not, I look to exit.
thanks for your down-to-earth comments steve. If you remember the thread by maverick, I learned quite a bit from that thread, and yet, I'm not nearly to the level of auto-reaction like you.
I started trading in May 2003 so I have been at it for some time now. Believe me, it doesnt happen overnight. If you want it bad enough and put in the time, you can make it happen. It sounds like you do, just dont get discouraged. How long have you been trading?