What is the Specialist Thinking?

Discussion in 'Trading' started by El Cazador, Jun 8, 2001.

  1. Babak


    Thanks for straightening that out Chris.

    And thank you for the compliment. Actually, I will take advantage of your presence here to tell you that I really look forward to your appearances on the Trading Track at realmoney.com

    You are the only person who actually goes into detail in explaining your thought process before, during and after a trade. Much appreciated!

    Chris, I wanted to ask you regarding how the new pattern day trading rules being enacted soon will effect your business (realitytrader.com)? have you guys taken a look at how many potential traders you will lose?

    I hope I'm not prying. The reason I ask is that we are all here curious as to what effect these new regulations will have on the market and liquidity. Any thoughts would be welcomed on this topic.
    #21     Aug 26, 2001
  2. Magna

    Magna Administrator


    I'd be happy to answer any questions here on how our tape reading principles differ from those that just think it's watching a Time and Sales or Level 2 screen

    As one of the ones who thought tape-reading was being able to read and interpret a T&S screen, please go into a little detail as to what you mean i.e., how your approach differs from that.

    Thank you.
    #22     Aug 26, 2001
  3. ChrisRT



    Here are two interviews I did on Yahoo FinanceVision that will help you to understand more.. I will certainly answer more specific questions if you have them after this viewing. Trying to answer this question in a simple post won't do it justice (and as such Vadym and I are in the process of writing our book on the subject <his first, my second>)

    The first I wrote for Ken Wolff, taking his methods and adding more of a psychology flavor to how the market works and how the last few years has seen an interesting shift during the mania. I took that beginning manual of his and turned into around 250 to 300 page literature. Should be availabe early September. Obviously momentum has waned considerably in the last 18 months after I finished writing it, so take it for what it's worth in the current period.



    Thank you for the feedback on our RealMoney.com contributions. I've gotten a very positive impression from the subscribers about me joining the TTrack team. Tony (Dwyer) and I are working on getting together for lunch when I'm there this week for my next FinanceVision spot at the Nasdaq on Thursday and we'll be discussing TTrack to make it better for everyone.

    As for the rules. I am not certain it will kill current memberships. Most of the current traders are survivors from the last 1/2 decade or before. I think it will rather discourage newer entrepenuers and this isn't the "American Way" (forgive my patriotism). This is what disgusts me the most. A group of us were having drinks at the Hyatt in Anaheim last week and Tony (Oz) was expressing his unhappiness that this will not really allow for the "American Dream" anymore. Tony was under 25K when he turned it into multi-millions. My partner Vadym went from 40K to 10K back to over 200K in 18 months.

    If he wasn't allowed to continue his learning curve once he broke the 25K threshold, he wouldn't be where he is, who he is today. Trading has drawdown periods, learning tuition, etc. Many things could take a daytrader to under 25K for whatever reason, and it could make it that much harder to "stage your comeback".

    Furthermore, it now impedes new dreams of a trader that comes in with capital under this mark and tries to learn the art. I don't recommend undercapitalized portfolios of course. But to me, the market should dictate who gets to play and who doesn't. It has it's own mechanics for weeding out the non-traders. It always has. All the SEC did was to increase the risk for the undisciplined.

    I know for a fact that if I had 4 to 1 margin when I first began, I would have declared bankruptcy in less than a year. I was long DELL when it crashed causing me a margin call in 1998. If I had 4 to 1 margin I would have used it and been killed. Account size does not dictate trading ability. Risk/Money Management was key here. 4 to 1 for the undisciplined is just as they say on the SI threads..more rope to hang yourself with.

    I'm off my rant.

    In short, current traders I don't have too much worry about. They've known this was coming for 1 year. We had comment periods and sent in our comments, etc. But growth in this niche part of the industry is where the uncertainty lies.

    Thanks Uncle Sam (Big Brother). I appreciate the way you to try to protect us from ourselves.


    #23     Aug 26, 2001
  4. genebort


    Chris Do you have a video that shows and/or explains your method of "tape reading"? If so, how much and where can one contact you to order same? genebort@home.com
    #24     Aug 26, 2001
  5. ChrisRT



    While I do run a site, I have always tried to maintain the idea of educator first, business man second. This is how Alan Farley described himself to me some time ago and I liked this philosophy very much and tried to stick to it.

    Therefore, I have two or three choices for you:

    Free - The Video Play of the Day that I do 3-5 times a week. I started this back in March


    Also, 1/2 hour tape reading video free:


    If you have questions after any video..I'm always just an e-mail away.

    Fee based: The Trading course has 50+ videos in this that also comes with the principles described in greater detail.

    Coming Soon: Our CD, no information on it.


    #25     Aug 26, 2001