rtharp, I did a similar thing with less than $5 Nasdaq stocks that move very slow and pretty much bounce around a .20 range all day. There's a fair share of +.01, flat, and -.01 trades, so commision rates become important. You spend alot of time staring at the screen, but with 5-10k shares I could take out buyers and sellers, and move the price. With something like LU (I've been trading LU a little lately to get use to listed stks), seems there may be 100000 on the bid and ask, a penny apart - no moving that! lol I agree that the big Nasdaq stocks are liquid enough you can get out in a hurry if you need to, I just have had bad experiences trading SUNW CSCO and the like. When is Echo gonna drop those ECN fees?
I'd check the NYSE rules before making such a statement. Specialists DO NOT have to execute an order in 90 seconds.:eek:
I went and checked T&S for the heck of it and saw a print of 9700sh at 11:01:03 for 6.83 and also a print of 9700sh for 6.85 at 11:43:14. Both times this trader could of sold higher. If he did, he must of scaled out. Does he scale out the 9700 shares or did this trader actually hold this long for .02 cents? I realize you probably don't know the answer but I thought I would ask anyway. Oh, and 8:1 risk/reward is totally awesome...
I got fills that were bad and called my broker then they did something called a governors ruling and give a price improvement that is how I know there is 90 seconds to fill a order. There is one exception if there is stock ahead of your order.
A govenor's ruling pertains to a dispute of a fill, usually price - not a time regulation. Stock ahead is the NYSE motto every time you don't get an execution.
If you trade nasd the fills are good in stocks that trade less then 1 million shares a day if you try to trade a high flying tech stock the fills suck.
He might have scaled out --not sure. That guy is in a different room than I am in. He trades with LU with the S&P's so during a huge rally he will get in and hold for a few seconds then dump his position when the rally slows down. If the market goes into a freefall he has a huge conversion on LU and will sell it fast. On what he did yesterday I can't say. I lot of times he will scale out. If you see 5700 shares a lot of times it is him also as that is his 2nd favorite position size. (he is trying to stay over the 2000-5000 penny rule that specialist add to positions) Robert
Opening strategies are so vital to a new traders success that I feel strongly about them trading listed stocks (obviously, since there is no "opening" on the OTC market). The liquidity is a big factor for all traders, and "tape reading" is a lot more meaningful when you have a single market location (more or less). We have expanded our horizons, and changed our attitudes somewhat towards trading the Naz, especially for traders who have "set ups" that they feel comfortable with. When all is said and done, we all want the same thing...profitable traders. Costs are always important, and if you can trade the Naz at the same price as listed, then it makes it more viable.