Trading the US the Naz/Mr. Charts Way

[franco]

Trader 333
Thanks for your help

 

[franco]

To all Tradestation users
Am having difficulty putting in stop loss,any help would be much appreciated

p.s. I use tradestation 7.2

 

[tonie]

Help please regarding trading Nasdaq stocks.

I am currently trading Nas stocks through IB using direct access, having observed that often in quiet periods the spread on some stocks become wide as volumes fade. I'm wanting to take advantage of this by Buying on the BID & selling on the ASK, but not sure how to do this. Not sure which orders to use & how to get infront of the inside BID.

Please could someone help

Thanks

Tonie

 

[Trader333]

Just put in a limit order at 1c above the current bid and you will now be the highest bidder. Then once filled put in another limit order at 1c less than the ask. That said it is not as easy as it seems as you may find that you cannot get filled on the ask if your bid trade has been taken and also when the bid - ask spread widens it can and does close very quickly which may go against you.

I recently tried an experiment with another trader where we traded MSFT, INTC and a couple of news stocks pre-market buying on the bid and then selling on the ask. We were never able to make a profit doing this even on the most heavily traded pre-market stocks because in a split second the spread would close and any benefit had gone and this was using hidden Island orders so our orders were not even seen.

It used to be possible to do quite well with this type of trading but I think those days may have left us for greener pastures.


Paul

 

[Mr. Charts]

A trade from y'day.
AMGN long 59.38 on pattern and tape reading

 

[Mr. Charts]

AMGN exit 59.84 on reading the tape
for profit +46
For those trading 500 shares = +$230
1000 shares +$460
2000 shares +$920 and so on

 

[Mr. Charts]

Interestingly, this turned out to be close to the high of the day.
Certainly it did look on the tape (T&S and level2) as if it was running out of steam at the level I exited.

 

[Naz]

Long TASR,stop under last low.

 

[Naz]

Trailing the stop and managing the trade.

 

[Naz]

Stopped out for a $2.16 run in 16 minutes flat. (or +216 points )

 

[Naz]

Ok back in again

 

[chump]

don't you just hate it when they do that.....but on a serious note the secret of course is not the position of the b/out,but HOW you managed to be in a position to see THAT particular one at THAT particular time.....

 

[Naz]

stopped out for some more profit.

 

[Naz]

HOW you managed to be in a position to see THAT particular one at THAT particular time.....

TASR is one of my core stocks,thats why i was watching it.It traded sideways during the mid day chop.Then set its self up for an afternoon move.All i did was look at level 2, read the story and jump on the train as it left the station then get out when the story changed.

 

[Salty Gibbon]

but on a serious note the secret of course is not the position of the b/out,but HOW you managed to be in a position to see THAT particular one at THAT particular time.....

Seeing it is not the problem. Having the balls to trade it after seeing it, is the real problem.

Lol

 

[Naz]

There's thousands of stocks on the Nasdaq that fits everyones criteria.Some are manic, some are gentle and slow.Its just a case of selecting the right one for each individual with a position size that you feel comfortable with.

 

[Salty Gibbon]

Yes Naz, you are right.

But why is TASR behaving so manically right now though ?

 

[Naz]

The latest news in the last couple of days on TASR,

TASR backs down sharply from highs of day, as talk is circulated that co may come to market with a secondary 81.91 +1.09: This speculation appears to be what has driven the stock lower in recent trade. We have no color here, but obviously talk of secondary offerings always pops up when companies experience the type of price appreciation that TASR shares have seen.
31-Mar-04 10:13 ET In Play TASER Intl continues higher on momentum buying, short-covering (TASR) 86.43 +5.61:
30-Mar-04 07:33 ET In Play TASER Intl announces $780,000+ order from San Jose PD (TASR) 74.29: San Jose Police Dept orders 629 Taser X26 weapons, order will supplement 162 M26 weapons previously purchased by San Jose PD. Order is largest purchase of X26 weapons in California history, Taser weapons now carried by 741 San Jose PD officers.

 

[Salty Gibbon]

Naz, what would you say is the optimum number of stocks to have in your "core" and which you continually keep an eye on during the trading day ?

 

[Naz]

Some daytraders might have between 1-6 core stocks that they follow and they are brilliant at reading them,because they play them all the time.

Others have a dozen or more (a small universe of stocks) that they keep an eye on and will just generally flick through and keep watching whats going on,looking for set ups.

TASR is one of my core stocks at the moment because it's manic and i can make a days money in one move, like last night.