Trading the US the Naz/Mr. Charts Way

[Naz]

That totally depends on the individual and the level of risk he/she is willing to take at that moment in time.

The key thing for me is to be trading the stock with a good direct access level 2 screen and understanding just where you can get out and not where you hope you can get out.That will tell you where your stop should be.

 

[Naz]

Many Nasdaq traders in my opinion sometimes miss the bigger picture and miss the bigger profits.

If you take TASR on Friday,it displayed many things that Nasdaq stocks can make a habit of doing.

It took out the 10am high pulled back to a fib retracement, held the decade number, went for a morning run.Held the lunchtime chop by holding the fib retracement,made the higher low and indicated it was ready for an afternoon run.

During that time it was up a maximum of about 15% on the day.In a hypothetical world a $25k daytrader with his normal 4/1 margin had the opportunity of $15,000 profit.

Just taking the morning run was worth about 12% or $12,000.

Even a spread better in the UK could have squeezed something out of that.

Sometimes its better to look for the big moves.In my opinion it has to move to make profits and there's always Nasdaq stocks ready to do that every day.

 

[Salty Gibbon]

That's a pretty excellent post Naz.
Many thanks.

 

[Naz]

You're welcome.Here's some more thoughts.

The spread comes in at times to 4c.The pullbacks are easily seen and traded if you're a Level 2 direct access trader.If the spread widens shave the bid and therefore pay no spread.If you use ib i wouldn't use smart order routing,you dont know where you'll get filled when something really moves.Perhaps it's time to think about using DAE,like Keano, myself and a few others now the EU rate is $6/1000 shares.

 

[franco]

Hi everyone
I have recently started to trade shares in the nasdaq and on two occasions I tried to trade a particular share and got a message,
"rejected,on hard to borrow list"
Could anyone explain exactly what this means!
Many Thanks.

 

[Trader333]

Was this a "Short" trade that you were trying to make ? If so
there is a limit to how much of a total stock that is permitted to
be shorted and some stocks cannot be shorted at all.


Paul

 

[Zenda]

Excellent Chart NAZ - Q? have you time to look at the longer charts when your activly trading minute by minute on Level 2 - Do you have a duel (mental account) on the two? Always found difficulty in this area - Find people are either one or the other myself! however glad to see Level 2 traders sometimes take a longer view - Nice Posts - incidently thats my fav chart pattern - Flat bases - GLuck

 

[franco]

Trader 333
Yes, it was a short on Tasr
What is the limit and how do one know which shares can be shorted

 

[Trader333]

It varies from stock to stock and in many cases you just dont
know until you try and Short it as a few minutes earlier it may
well be still possible to short.

Generally when a stock falls in value a lot of traders try and jump
on the bandwagon which in turn means that thousands of shares
get shorted. In addition to this your broker will have a limit on
how many shares they can permit to be shorted because what
happens is they allow you to borrow the stock from them to
Short. If they are at their limit then no more shorting is allowed
through them. You would be better off asking them what Short
limits they have on certain stocks.

As a matter of interest, who is your broker ?


Paul

 

[Dow Dog]

You're brave, playing with TASR

 

[rotan]

I know this is probably not the place to ask this and may come across as a bit thick, but how does a person actually get Level II Direct Access for the US? Naz, if you or anyone else could point me in the right direction I would be most grateful.

There is just too much scraped off the top of spreadbetting to be able to profit in the US (as far as I can see).

Thanks,
Mooch

 

[wheezergeezer]

I have an account with IB, and you can subscribe to level 2 for around $20 per month. other brokers charges may vary,

good luck............wheezergeezer

 

[rotan]

Thanks wheezer, but what I'm talking about (I think) is EDAT i.e. direct access, where you can effectively become a market maker. Not sure if you can get this through a normal UK broker? I've seen a CD video by Naz in which he talks about it, but I don't know how to get it and get set up with it.

 

[Mr. Charts]

You need to set up a Pattern Day Trader account with a broker (eg IB) with a minimum of $25000 which gives you 4:1 margin and unlimited day trades.
You can then sell on the ask and buy on the bid once you learn how and if the opportunity arises. You are then trading like a market maker - or at least like you think a market maker does ;-)

 

[Trader333]

wheezergeezer,

The IB level II is total rubbish in my view as it does not show any ECN quotes so is not worth considering. Both IQ feed and money.net offer Level II quotes for $30 per month.


Paul

 

[rotan]

Thanks for your responses, guys. Does E-Trade have a Pattern Day Trader offering, do you know? (since I am already set up with them)....

 

[franco]

Trader 333
Thanks for your reply,very interesting!
would I then be correct in saying that if I was to short on an up tick I stand a much better chance of getting filled but would this then make the intended trade much more of a risk
I use Tradestation 7.2

 

[Trader333]

franco,

Based on the message you got when attempting to place this trade, it was not the uptick that was the issue it was the fact that the level of Short interest in the stock was at your brokers maximum. So the uptick would have made no difference.


Paul

 

[Naz]

The level 2 direct access software comes from your broker.

Zenda.Yes i do try and keep the bigger picture in focus and not just think of the immediate instant on the level 2 screen.

Rotan,E trade does have a pattern daytraders account and also supplies you with the level 2 software.

 

[wheezergeezer]

Trader333, thanks for your input, I'll check these out,

Regards, wheezergeezer