Making $150,000/ month trading US stocks.

Look at the date of the first post of the thread, 2002!

That´s why probably nobody would answer.

Interesting history anyway.
 
IMHO

I've done lots of research on Level II trading anything. This is, at least my conclusion. Yes, there was a fantastic time for Level II tape readers during NASDAQ Internet boom, when everything was high and volatility was enormous by today's standards.

Lots of guys who were quick, made crazy amounts from tape reading and daytrading.

But, but and but again, none of those guys are doing Level II tape reading any more. They are all into teaching. Call me cynical, but that tells you all you need to know.

Maybe, in a future, there is going to be another stock market fever and one would be able to do it again, but for now one needs to wait.
 
$150,000 per month

Thanks for your article... nice reading... do you still have the original article. I would love to find out from which firm she was trading...my email is [email protected]

Thanks.

Naz said:
This is what a young lady trading in New York, who appeared in Active trader magazine March 2001 edition was making.It was given to me by one of her bosses to give an indication of what his proprietry traders were doing.

Lets see how she trades in the article.

Firstly she trades US Nasdaq stocks.She does about 250 trades a day using NASDAQ LEVEL 2 direct access.Trading between 500-6,000 shares at a time.She makes $150,000/month and has made as much as $250,000/month.She has netted $50,000 on her biggest day and lost $19,000 on her worst.She is allowed to keep 70% of her profits.All her conversation is entirely about her reading of her level 2 screen and trades are naturaly direct access into that screen.

I'm a momentum -based trader she says."When a stock is moving i'll buy it when it slows i'll sell it.I take each buy differently from each sell,which is important.I take what i can out of a stock.sometimes i dont take as much as i can;other times i'll push a little to far.Typicaly i'll be in the quater,three eights or half a point profit range.I'll sometimes shoot for a point in some wider spread stocks,but i'll be taking more risk in those cases.(A point is a dollar run in a stock)

I look for higher volatility and volume so i can get in and out with size.But basicaly i'll trade any stock thats moving.

Another thing i like to do is play off support and resistance.When youre in a stock every day ,making hundreds of trades a day,you can see who the main buyers and sellers are,and when they're buying and selling.Thats how i identify support and resistance--I dont use charts for that.

First of all the only way you can realy tell who the main buyers and sellers are and what the market makers are realy trying to do ,is to be in the stock.You can see the prints going off either on the bid or ask.Ultimately the only way to actualy know who is doing that is when you preference them(direct a trade to them.ie a select net preference order)and either they trade with you or they dont.

Say i see Morgan Stanley buying all the morning,consistently on the inside bid,and then he flips sides and goes to the offer.Then i preference his offer because i think the stock is going up,and he dosnt trade with me.since i know he was a buyer earlier ,i know he's just trying to fake someone out.Basicaly you want to see aggressive buying or selling ,not just the posting of bids and offers.

You want to use this past trading information to provide a little extra insight to whats going on right now-not necessarily an absolute indicator of what will happen in the future.

The same kinds of signs ,but on the opposite side of the market.For example,if i've seen Morgan constantly going high bid,when i see he's not going high bid any more,and when people on the sell side -say other market makers like Herzog or Goldman Sachs -are actively selling and are not raising their offers to much or to quickly,that tells me the stock is slowing down and i should sell it."

She uses a S&P futures chart and a chart of the stock,but she uses them only to see if she's not trading late in the move.She gets her stocks from seeing them run on her Nasdaq movers list.

So there you are we can all go out and earn $150k /month now.

PS. By the way she was in her early twenties.One major thing is, that she certainly knows the answer to support,resistance and momentum is the correct reading of her level 2 screen. :)
Click to expand...
 
insight2 said:
IMHO

I've done lots of research on Level II trading anything. This is, at least my conclusion. Yes, there was a fantastic time for Level II tape readers during NASDAQ Internet boom, when everything was high and volatility was enormous by today's standards.

Lots of guys who were quick, made crazy amounts from tape reading and daytrading.

But, but and but again, none of those guys are doing Level II tape reading any more. They are all into teaching. Call me cynical, but that tells you all you need to know.

Maybe, in a future, there is going to be another stock market fever and one would be able to do it again, but for now one needs to wait.
Click to expand...

I agree. Level II is a lot more complex than back in that time period, especially with the number of program trades that go on today. To me, the tape just seems to have so much noise in it. I do know that some of the traders that can make sense of it are still doing quite well off the tape. I just think there's so many other tools out there that give a good read of S/R too, but it all depends on your trading style too. I don't make 10 trades a day let alone 150+ so reading the tape doesn't hold as much value with me either.
 
Hercules88 said:
I agree. Level II is a lot more complex than back in that time period, especially with the number of program trades that go on today. To me, the tape just seems to have so much noise in it. I do know that some of the traders that can make sense of it are still doing quite well off the tape. I just think there's so many other tools out there that give a good read of S/R too, but it all depends on your trading style too. I don't make 10 trades a day let alone 150+ so reading the tape doesn't hold as much value with me either.
Click to expand...

Not 150 000$ per month, but 30 000$ is real! We use the same technique that She used in early 2000, absolutely the same! I do up to 1500 000 shares per day to make 3500$ and up to 450 trades per day. Just S&P movements, support and resistance, tape reading. Nothing else needed.
 
Serhio said:
Not 150 000$ per month, but 30 000$ is real! We use the same technique that She used in early 2000, absolutely the same! I do up to 1500 000 shares per day to make 3500$ and up to 450 trades per day. Just S&P movements, support and resistance, tape reading. Nothing else needed.
Click to expand...

450 trades a day!!

your broker must love you:p

you should ask for vip treatment, tickets to football games, private partys, etc etc
 
It's quite possible. But it takes a very unique personality to be actively scalping like that, not to mention how tiring it would be. Personally, I'd get a little frustrated if all I took was a measly 2 cents per share profit and the stock just rallied for another 20 cents.

However, I am finding that actively scalping, whilst requiring tonnes of practice, is a great way to make a living.
 
amit1986 said:
It's quite possible. But it takes a very unique personality to be actively scalping like that, not to mention how tiring it would be. Personally, I'd get a little frustrated if all I took was a measly 2 cents per share profit and the stock just rallied for another 20 cents.

However, I am finding that actively scalping, whilst requiring tonnes of practice, is a great way to make a living.
Click to expand...

Spot on :)
 
amit1986 said:
It's quite possible. But it takes a very unique personality to be actively scalping like that, not to mention how tiring it would be. Personally, I'd get a little frustrated if all I took was a measly 2 cents per share profit and the stock just rallied for another 20 cents.

However, I am finding that actively scalping, whilst requiring tonnes of practice, is a great way to make a living.
Click to expand...

Thank you for understanding me! You are firs one!:)
"...the stock just rallied for another 20 cents." - I trade share that moves 20-40 cents during the day, and total volume is 50-80 millions per day, I can't wait half a day to make one trade with my style!
"...I'd get a little frustrated if all I took was a measly 2 cents per share profit.." - sure, cos you should pay your broker at least 3-4 $ per 1000 shares.)))
Thank you!
 
Serhio said:
Thank you for understanding me! You are firs one!:)
"...the stock just rallied for another 20 cents." - I trade share that moves 20-40 cents during the day, and total volume is 50-80 millions per day, I can't wait half a day to make one trade with my style!
"...I'd get a little frustrated if all I took was a measly 2 cents per share profit.." - sure, cos you should pay your broker at least 3-4 $ per 1000 shares.)))
Thank you!
Click to expand...

First of all, I am sure I am not the first one to understand you.

Second, how are you able to read stocks that trade such high volume? You are talking about the likes of MSFT, LOGI, INTC...those stocks barely move 5 cents continuously before retracing, so how are you able to get 20-40 cents out of them?
I'm able to get a slight edge in reading mediocre-volume stocks - ones with less noise. I know when to scalp and when to run it as a swing trade. But, I cannot possibly ever think of using whatever edge I am developing on the thick stocks that you claim to trade.

$3-4 per 1000 shares? Where are you able to find such low commissions? My broker charges me 10 bucks commission on 1000 share positions per round trip.

P.S. I just missed a nice SLW breakout scalp whilst typing this message :)
 
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