smallest spread

FTSE Beater

Experienced member
Hi Money123

I would say all of them.
Most brokers go through all the market makers to find who is offering the best price at any specific time - and the market order will go with the best one.

HTH :)
 

GreyingSurfer

Active member
Money,

With FT100 stocks it really shouldn't make any difference. They are all SETS traded so there is no real room for a broker to get a tighter spread by hassling the MMs as they can do with small caps. For FT100 stocks I'd choose a broker purely on the basis of commission, service etc.
 

Naz

Experienced member
For the life of me i'm sorry if spreads are important why not trade the Nasdaq 100 instead of the FTSE 100.Nasdaq traders don't need to pay spreads.If they do its normally only 1c.

After hours Nasdaq traders can capture up to 40c on
the spread thats $400 profit with a thousand shares.

TELL me why when its been said time and time again about the benefits of trading the Nasdaq why more UK traders don't look at it.Forget that i teach it.I'm not pumping for any business.

I'm a trader first, like all of you and it saddens me when i read things like the above.Who offers the best price? Who cares, offer your own price on an ECN,become your own market maker.Trade on a level playing field with the market makers.Don't throw money away in unnecessary costs.
 
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Mr. Charts

Legendary member
I don't believe in trading on a level playing field. I only trade with it sloping my way. Buy on the bid, sell on the offer whenever possible.
 

Naz

Experienced member
What market are you trading, the US of course.

US stocks just like me.I can never understand when there are such big benefits in doing this why more people don't check it out.Are they trying to make money or throw it away?
 

Mr. Charts

Legendary member
Of course, Naz!
Where else can we make money so consistently? ;-)
R
 

Mr. Charts

Legendary member
.....although I also trade NYSE stocks as well as Nasdaq. Sometimes the specialists are surprisingly easy to read on quote montage.
R
 

Naz

Experienced member
Sometimes i am at a total loss to why more UK traders don't check it out more.
 

Mr. Charts

Legendary member
They think it's too difficult when it's easier, and many of the folk I've trained start off thinking the US market is so unfamiliar they'll get eaten alive and are quickly delighted to discover how much more transparent it is than the London market; and how much easier and more consistent it is to trade.
But yes, I too shake my head with disbelief sometimes.
Mind you, I also do the same when I read some of the methods used by some folk on this board.
 

Naz

Experienced member
I shake my head in disbelief also at some of the methods talked about on the board.

You are absolutely correct in saying the US is more transparent and easier to trade.
 
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FTSE Beater

Experienced member
Naz said:
I'm not pumping for any business.

hmmmm ;) ;)

This might be the hardest and daftest post I have ever done. Not only I'm I going to give reasons why to trade UK stocks, but I'm also going to do this while <strike>Arguing</strike> discuss my point with Mr.Charts and Naz - 2 superb traders in their own right. I don't fancy my chances on this one :eek:

Here goes:
  • The time difference means you don't have to worry about trades that your in the evening.
  • The markets are less volatile - Ok another thing in favour of the US.
  • You know more about the companies your trading.
  • There's a lot less to look at
  • Can only trade 3 times a week on a small account
Some of these points can be used in favour of US trading - but as always in comes down to personal choice.

There you go, my attempt at justifying trading the UK over the US - I think I failed, but hey I gave it a shot :)
 

Mr. Charts

Legendary member
Hi FTSE-B,
Thank you for your kind words.
Why trade the US? Let me give you some examples from today.
This is an extract from an email I sent a few minutes ago to someone considering my coaching:

"I've attached two trades I've done today. I also shorted BGEN and got stopped out for a loss of $125. As you can see they were all finished before the first hour of trading was done. If you decide to go ahead with the coaching, I would show you how to find trades like that and why they usually work reliably.
I'm done for now but might look at the market again later.
Profits ELAB $1005, profits SYMC $235, losses BGEN $125, so net profits $1115 banked. That'll do me fine, especially on a trading day like this one."

I normally trade 1000 shares with tight stops.

I think that illustrates why I trade the US.
I will now send four .gifs showing the charts I made at the moments of entries and exits on the two winning trades.
 

Mr. Charts

Legendary member
SYMC short entry
 

Attachments

  • symcshortentry.gif
    symcshortentry.gif
    19.4 KB · Views: 486

Mr. Charts

Legendary member
ELAB closed long position

I hope these .gifs vividly illustrate why I trade the US the way I do.

Best wishes,
R
 

Attachments

  • elabclosedlong.gif
    elabclosedlong.gif
    17.8 KB · Views: 482
 
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