Market chat

MSFT update.

I mentioned that the pullbacks confirm the trend.That sure was a beautiful one at $51 and a fib level as well.All you need to watch what was going on was your level 2 screen.Will it break will it hold.Its all there infront of your eyes.Learn to read that screen well and you'll be ahead of the game.Oh and that means you'll get those scalpers entries on your swing trades.
 

Attachments

  • msftfib.gif
    msftfib.gif
    8.8 KB · Views: 452
As an observation i would suggest that the trader that daytrades large UK stocks and the odd index might look no further than adding MSFT to his/her trading stable.

They might well find that with its definable turning points,large liquidity,level 2 participation, window into the US markets, it may not only help their profits but give an added edge to feeling posible moves in the other items that they trade.
 
Naz, I have tried a few trades on large cap US stocks - MER, JPM in particular, but I find that the spreads can be surprisingly wide. The also have an alarming habit of gapping. I gather that this may be due to the specialist system on the NYSE.

I was looking for stocks which might be similar to those I trade on the LSE - RBOS, HSBA, BP, BARC and such like. I trade via CFDs, as I don't (yet) have a US account.

I get the order book information on Mytrack, but it's of limited use, and I'm wondering if NYSE stocks are not ideal trading fodder due to the specialist system.

Any comments ?
 
Hi Morris.
I trade NYSE stocks just using t/a.I enjoy the stops that can be put in on the superdot systemThese work 100%.So i find that i can just put in the stop in forget about the stock only looking at it periodicly to see if i've been stopped out or adjust the stop to lock in gains.

As you know i trade the Nasdaq.The same type of large cap stocks that you mention on the LSE can be found in the Nasdaq 100.A list of which can be seen at www.Nasdaq.com.

Most of these stocks have spreads that will make UK traders weep they are so small.Mind you you can also buy on the bid and pay no spread at all.

Yes these stocks do gap in opening trading,but because you have direct access,you can perfect your skills and try and profit by closing the gap with your trade.Try the Nasdaq 100 you might find it suits you a little better than the NYSE.I hope this helps.

Naz
 
Hi. Anybody out there trade UK shares? If so would appreciate any help with info. on free research sites. Particularly regarding dates companies release results, charts and news alerts. I currently rely mainly on newspapers, FT.com site and Bigcharts but need more.
Also any exchange of ideas, strategies etc would be most welcome.
Steve
 
Hi Steve,

A good site for UK research is www.advfn.com which gives realtime equity prices and charts, though not streaming.
Another is www.citytcomment.co.uk which gives realtime streaming index prices, and also chart which is updated realtime every 5 minutes.
Both these are free sites.
 
Thanks Steve,

Also, while on subject, i just noticed that there's a v.good section within this website that has a lot of links to different trading related websites.

It's within the "Knowledge" section at the top.

http://www.trade2win.co.uk/knowledge/directory/

Even though I posted sites I could recommend, I think its often forgotten how much usefule information there is in other areas of this website. Full marks to all those concerned.
 
How can you make this statement??? there are other BB.s out there with very proficient traders.....for example INDEXIA traders BB from which you would be excluded if you do not use there softeware.........still if it makes you feel good making stupid ill informed remarks........
 
Tolerance of divergent views

Dolton.

Are you connected to Indexia?

The poorly rated sites were not mentioned by name; therefore it follows that out of many so called trader sites - some must , by the law of averages, be bad.

Even so, good/bad is relative to the perceiver which is why views sometimes diverge. Nonetheless such divergence is no excuse for name calling among adults.
 
MSFT update.

Still short and the pullbacks at fib levels creating more opertunities for those with level 2 screens and a good understanding of how the trading is taking place at these levels. Just do your homework,make sure you've got a fib package and a level 2 direct access screen.Where do you find all this,you guessed it on the Nasdaq :) By the way even if you spread bet and shorted the Dow you'd be approx 600 points in profit since this thread showed that island reversal at a fib level in MSFT!

In all honesty look at a previous fib level like $51.How do know if its going to break out or collapse.The only way to view it and get a great entry is to watch the players on the level 2 screen,read the action and get your trade in with direct access.Anything you see in any chart or indicator will be after the action is over.Yes you'll get in but its cost you money while you've dithered about is it or isnt it going my way.This is of course only my personal view. :)
 

Attachments

  • msft50.gif
    msft50.gif
    7 KB · Views: 587
Last edited:
Just like to say hi to anyone who was at the Guilford University seminar on Advanced Nasdaq trading techniques.(advertised on T2W.) It was a great pleasure meeting and teaching you all.

Outside in the lobby many were talking to the IT guys i invited from a new web site offering free Nasdaq level 2.Its going to be free for 15 minute delayed data and between $10 to $15/month for live Nasdaq level 2.

In the seminar you saw how i read the level 2 screens and saw turns in the market before they happened on the chart and how i used the level 2 data to manage my trade once i was in a position.Now this free level 2 data will give everyone the chance of practicing their skills.Another thing the IT guys showed me was a fantastic scanner and trading strategy software that will be available for the US markets.I have asked them to make sure that they also make a version that will scan the UK markets so UK traders can use it over here.

Like anything new these things are being put together and tested at the moment and i will let you know when they are ready.
 
Last edited:
Very much tongue in cheek, Naz, but I have a patented Tortoise that scans UK stocks :)
Sounds great about the free delayed L2 feed,which I presume would be every bit as good as a live feed for practising one's skills?
Here, the added bonus would be you could cross correlate your efforts by looking at real time charts to see if you got it right.... I like that idea.
 
Yes Chartman i think the free delayed Nasdaq level 2 would be ideal for traders whilst they practice.It would good to see a major turn in a real time chart and then see how good you are in spotting the reversal in the delayed level 2.

Who knows maybe many will get realy good at seeing MSFT and INTEL turning at the same time,reflecting a turn in the Nasdaq 100 index.This may very well help the spread betters who trade the Nasdaq index.
 
Realistically, at best, all one can hope for in TA to catch a reversal, top, pullback or whatever , is two ticks.The first as a warning ( and gamble entry) the second as confirmation and (relatively) safe entry, but far too late for the spreadbetters. So we're talking 1- 2 minutes. What would you say was a relative timescale using L2 to identify these events? Is it a case of the story unfolding before your eyes and at some point you can say " this will NOT go further.... and that would be at some point during the first tick?
 
Any chance of seeing what the L2 screen was showing for the 2nd chart Naz?

Options.
 
Of course.You'll notice it shows lots of support on the bid for the start of the next leg up.
 

Attachments

  • intcc.gif
    intcc.gif
    23 KB · Views: 522
Last edited:
Thank you Naz.
Very clear example.
One thing that has been throwing me for a while.
I had assumed (must stop doing that) that the background colours on the L2 screen were states of order. IE green activated, blue pending, red limit order; etc etc.
Is this the case?

Options.
 
You must log in or register to reply here.

Similar threads

Lee Shepherd
Farewell old boy
2
Replies
26
Views
4K
mauzj
mauzj
BSD
Billionaire trader through 15 minutes work / day !
Replies
6
Views
8K
BSD
BSD
P
Visible PnL ?
Replies
7
Views
2K
tomorton
T
BSD
Atlantic: Injured Sailor sends Mayday to his local Pub
Replies
5
Views
2K
BSD
BSD
Directional
FSA requirements for statements and trade reporting
Replies
8
Views
5K
raysor
R
Top