Does anyone know of any books that explain how the specialist works his book? Somthing possibly written by a former specialist that might talk about the strategies and secrets of NYSE specialist.
in general the NYSE is supposed to be smoother and more price friendly towards traders than the NASD. in trading there are relatively no absolutes, like Zero-Sum-Gaming Theory and Zero-Balance Accounts NYSE allows the specialist, and perhaps it should, the ability to turn off the NYSE+ order routing feature, which frustrates traders, whether intraday, position/swing or longterm investors. From what I've been told, the NYSE+ was supposed to emulate the Level2 auto/speed execution mechanism, thus allowing all bidders/askers to get "what's up". (("up" means the minimum number of shares which will be honored at each price level)) By turning off NYSE+, in particular in AOL, it forces orders either to the Specialist or the other markets (ISLD, ARCA, 3rd market, etc.). Volitility like this makes one wish for the simplicity of the NASD Level 2 system. Other stocks trade smoothly, and the ability to post orders on the "book" is a feature that's cleaner than on the NASD method of price levels. While these ideas seem similar, and you can either dispose or purchase a stock, eventually, its all in the manner of the execution and the ease and "consistency" of the execution process. NYSE still wins, however NASD has its strong points, especially in highly liquid stocks
Bloomberg has a function that is similar to Market Profile. I think too many people think it may be a holly grail. It's just like any other indicator it only works when it falls in the same cycle of the market.
My broker doesn't support NX yet....I asked them for it over a year ago (feb 01 to be exact)...They gave me cheap commissions to stay. It work pretty good on the semi-liquid stocks. Some times I'll get filled from a hidden ISLD or INCA. When I can't get in through the specialist I hope to catch someone sleeping.
It is consistently inconsistent. For you lurking scalpers with no idea of real trading skill, this is a bone thrown out to you.
Block trades [about 9-10 k +]sound wise. Welcome back Don,did the Dr. ,let you eat beef or venison steak?????????????????????? Fake shake differs from real reversal in a profit max daytrade. Using plenty of charts, including 30 minute chart.When in a good trend, super selected trend, don't look on a 1 minute chart or headfake much. A fake shake is like 1 birthday candle differs from 30 birthday candles in a profit max daytrade.
I have access to NX and NYSE Open Book (both useless in the big picture) ..and ECN's (INCA, ARCA, REDI & ISLD). From what Ive seen, I wish the specialist system would just disappear. It is such an unfair system. I think it will disappear soon enough. Soon, there will be 24 hour electronic trading between the traders....Just much more liquid ECN trading I would hope.. And if someone is sleeping with orders out there, they get smoked. I can accept that. I dont understand why that hasn't happened yet - so much fairer system than the specialist or MM system. Of course, this means we have to learn an entirely new trading system..But so what? We've been adapting to changes all along...
Keep reading about how NYSE is better for traders now (better = easier?), but what are the biggest advantages of trading against a specialist vs ECNs + MM's? If one doesn't have access to the order book on NYSE, wouldnt setting mental stops on a specialist managed stock be extremely difficult compared to nasd where at least you can see some depth (and under normal market conditions execute vs what you see, instead of hoping the specialist doesn't screw you too bad ) Is it just that those not brought up on video games can't keep up with NASD and dont bother? Heh, jk, would really appreciate some insights from those that moved over from Nasdaq to NYSE.