what are the specialist on level 2?? NYS??? or is any of them except the markets like isalnd and arca?? maybe this is a stupid question..but it would be nice to explain..thanks
There are no "specialists" on Level 2, as there are no "specialists" in the nasdaq marketplace (even though listed/NYSE stocks will trade on all markets, inlcuding INCA and ISLD). The closest thing you have is institutional market makers (MM's), such as goldman-sachs (GSCO) and merril lynch (MLCO). ISLD, ARCA, and INCA are all marketplaces, and include all types of orders from day traders, retail investors, market makers, institutions, etc.
don talks about useing prem to help trade.i dont see it. i must be doing something wrong.when i chart prem the spikes are so fast that its over before i can react to it.can sombody explain how they set it up (chart timeframe ect) and use it correctly. tia vhehn
prem trading is essentially a timing game. There are theoretical models that will tell you when program buying/selling will occur during a specific day as it relates to prem. A "better" way to use prem is the common sense way. Assuming you are trading a stock that is in the SP500, and you are watching all day long because it is a core stock for you, why not take note of the level of prem when your stock takes off? nitro
This applies to very quick response, and the PREM is only one part of a very quick entry/exit decision....and will be gone long before it shows up on a chart, as are most things. When trading, the Prem/discount is sometimes a deterent...you see a good setup...get ready to buy, check the Prem, and change your mind......helps a lot. Don
@nylord1 thx for your earlier reply for those trading sectors, where do you look up sector strength,. etc. Do you use heatmaps from any online sites or what do you look for?
I have a quote screen where I put several stocks from a sector that are the clear leaders and the "laggards," as well as a chart for the index for the sector (somewhat redundant, but it doesn't hurt.) I then watch wich ones/how many are green(er) and wich ones/how many are red(er) and trade accordingly. I am developing a C++ program to display my own "heatmaps" but for a differerent reason then sector trading. They are useful for a variety of things. nitro