And so to the challenge....

[triplepack]

x-roads , options

Thanks for the feed back.
I think I am at the point where my reading of Level II and use of simple ta is giving me entries with a positive outcome be it profit or flat. I now need to gain live access, to get the feel of execution
so as to remove the false sense of security/achievement whilst papertrading and to find the best order routing in differnet conditions to obtain the best position.

When you are in a position and you've bought on the bid and the spread is say 10c on a $50 dollar stock do either of you get tempted to capture that spread whilst the position is onsolidating and turn it over 2 or 3 times and then carry on with the original postion when the time of day or volume start to make the spread narrow or price to move ?
When you do go on the offer, do you route to any particular ecn (as sometimes I believe an ecn may have a wider spread than that on the Nasdaq level II screen and give a better offer price)? I ask as this is something which goes through my mind especially if I find myself in the Midday doldrums. (still paper trading of course ).

Cheers

Triplepack

 

[Trader333]

Triplejack,

If you trade using IB then what happens is that using their SMART order routing system, (which is the default) your order will automatically be routed to the best price available. When you check your executions you will see that sometimes you have traded with Island, other times it can be a MM or another ECN.

There are times when it may be in your interest to route your order in a particular way but this is for advanced users. You are also able to buy on the bid and sell on the ask by using Limit orders which is better if you can see on the Level II screen that the spread is wide.


Paul

 

[triplepack]

Paul,

Thanks for that yes, I do hope that when I am live with my account that the buy on the bid approach is going to be practicable for me for trading , as this will help when the stock wiggles up and down. I believe it will give it that little bit of extra room for it to breath prior to being stopped out either at break even or at a predetermind stop a bit lowerprior to the succesful move in the anticipated direction.
Especially upon entry where I believe it to be the most dangerous point for a trade.(a bit like a plane taking off lol). Later on the spread can be the bonus of Level II trading for squeezing that little bit extra out of the trade when it is moving and everybody else is buying.

Thanks for your help once again , it is appreciated.

Richard