Market chat

[Naz]

For any Nasdaq level 2 trader who wants an axe that shows himself well.Take a look a t BGEN.MSCO was excellent at times.It was a pleasure watching him yesterday.

You sometimes hear people winge and say oh! i hear about all those market maker tricks and fakes.Forget it.The axe shows the way,the Nasdaq is the only place to trade and the only way to trade it is on a level 2 Nasdaq screen where moves are shown in advance by correct reading of your screen and profits are enhanced by suble direct access skills.

Put that together with a little t/a.Which in this case was closing the gap (yes i know it was also a fib level) and wow do you have something potent.

If you're a trader you'll get there in the end it just depends how long it takes you to open your eyes and decide you need more of an edge in your trading on a market where stocks are known to move more than others.

Of course this is only a personal opinion and i might just be talking out of my hat.but then again i might not.

 

[mmillar]

Couldn't agree more Naz.

I watched BGEN yesterday as well. Although it was a good TA move (closing the gap) it gave me great confidence watching the main marketmaker (MSCO) backing away from the market and failing to provide support for its stock.

And when they started selling...

 

[be-positive]

A question for ALAN (naz)

Hope this chart works

 

[Naz]

Hi be positive,

Now i'm not trying to be nasty i'm going to tell the truth.

It is very difficult to trade BGEN with a chart like that.Some how you'd better come and see me and let me explain Nasdaq level 2.

Fourth candle in, above 39.29 thats was MSCO buying and trying to hold support.He backed off as it slowly rose and dropped the bid big time which was the key for the collapse.Because when it came back there was no support he'd already gone so we collapse.all the way down he did the same trick.As the stock tried little bounces he dropped the bid ie no support so we collapse.

Then its very difficult to see from the chart.But the last red candle at 10.40.That move was MSCO as a seller on the ask.It just dropped like a stone and that was the final major move of the morning.

He was in play all the way dictating the move.As soon as we started meandering he pulled right out of play job done.

 

[Naz]

Because of Nasdaq rules it is extremely difficult to short a stock as it collapses.So if you say i'll just short it as it takes out the first candle of the day looking at your chart you will not get it.

However if the axe holds a level and it starts to rise and then he drops his bid big time you can short the stock because you'll have an uptick and you know that when it pulls back he wont be there to support it.As he was the only player who held that last support level then it will collapse.Watching what he does is your key not only to read his thoughts but to get the short on before it falls.

I only use the chart for the initial set up.After that its ALL level 2, to read the action and direct access skills to execute my trade in the blink of an eye.

Using a 5 minute chart when trying to go short on the open in a Nasdaq stock is a recipe for disaster.You have to read the possible action in advance and get those shorts on quick.

Filling the gap is bread and butter to Nasdaq day traders.Nasdaq stocks because of their volatility have them all the time.Playing them is great.BUT have the tools to do it correctly otherwise you can whistle in the wind.

As a plug.Just playing one gap play on the open correctly, would pay for my course,details of which are on the t2w home page.

 

[be-positive]

Hi naz,
Thank you for your reply; it was very naïve and stupid of me to post that 5 min. chart,
I will refer to that great quote that options made on the 5th. Jan It is as about as much use As a fart in a thunderstorm . With hindsight it would have been much better if I had posted a 1 min. chart for illustration.
By the way I do not believe for one second that you could be nasty to anyone, some days (like us all) you will be irritable but I suppose the best person to ask about that is Lady Rich. Thanks to the power of the Internet this fantastic BB has given novices like me the opportunity to converse with professionals like your good self (in many eyes one of the best in Britain). I believe it was one hell of a coup by Sharky (well done Paul) to have your Level II course on the home page of T2W.
You suggested that I come and visit you, this hopefully will be in the near future, but before taking this step I like many other novices out here require some kind of introductory material that we can study beforehand otherwise I would feel like a fish out of water. Do you have anything planned concerning this matter?

Peter.
PS. Must look at letters page shares mag. (missed that)

 

[Naz]

Be Positive.

Kind words.Much appreciated.1-2-1 training is ideal for anyone of any standard because it explains things from the level of understanding that the student is at.

I love 1-2-1's because they're all slightly different.It starts by having a chat with the student and listening to his/her trading progress and how they intend to develop things.Listening to their lifestyle and how they intend to trade puts the first step into putting my thoughts together and which pathway we will go down that day.

ie If someone is a beginner,ok we might need to brush up on some basic trading skills and then slowly show how trading the Nasdaq with basic level 2 skills can bring better rewards.

With a big trader trading really large size and making a living at it.That 1-2-1 has to be completely different because his/her needs would be really different.

Then the Nasdaq scalper who wants to change his style of trading whilst still using level 2 would be treated differently.

Advanced level 2 skills to a trader who scalps on the Nasdaq with level 2 would again be really different.

The t/a trader who wants level 2 as extra information would again need to be treated differently.

The trader that works and wants to fit level 2 trading around his job also requires a different approach.

In the first half an hour i listen and find out how much they know and where they want to go and then in my mind i say yes i know how i'm going to run things today.Because everyone is different and its understanding each individuals needs that is the key to 1-2-1 training.

So you see you don't need any introductory material and feel like a fish out of water because if i've done my job correctly in the first half an hour i will be right at your wave length and know exactly where you are.1-2-1 means just that so there is no embarrassment,because its just you and me,if you dont understand anything i just make it easier and go over it again.

 

[Trader333]

Short Selling Threat Question for Naz

Alan,

I am interested in your view on the recent lobbying of the SEC to effectively stop the ability to short sell. In my view this would drive down weak stocks even further as no institution would consider holding any of them using a buy and hold strategy. However, you are far more experienced in this and I would welcome your thoughts on the subject as I am sure others would as well.

Thanks


Paul

 

[FTSE Beater]

My 2p worth is that the BIG boys won't let it happen, and even if they do - someone will find a way to get around it (Like their trying to do with the $25,000 rule)

Just my thoughts - and Naz The stage is all yours

 

[Trader333]

Hi FB,

I wish I had your confidence on this as, from my understanding, it is a very powerful lobby trying to bring this in and politicians that are pushing it. I hope to be proved wrong.


Paul

 

[Naz]

This is a real emotive question.I appeared on CNBC to talk about this after Sep 11th.I fully understand the reasons behind trying to stop short selling and the American idea that it is unpatriotic.Many people with pensions and long term holdings can feel that short sellers are driving their holdings down even further.

In a true market i would have thought that everyone whatever they trade or invest (including pensions) should have the ability to go long or short.Remember that short sellers at some stage have to buy back their position and therefore create upward momentum that can help anyone who is long.

You never hear long term holders saying then "oh drat!" That short covering shouldn't be allowed its just helped increased my pension pot by "x" amount.

 

[Trader333]

I think that markets exist ultimately to faciltate trade. If short selling is not permitted then many markets may well have no real trade at all which will in turn cause prices to fall. As Alan says short sellers always buy back their positions. If only long positions are allowed then I think that in a downward market no-one would be able to get out of their position which would cause total market collapse.


Paul

 

[Naz]

I had a nice chat with someone just recently about after hours trading on the Nasdaq.I think he was surprised that so many opportunities are around during these periods.Capturing spreads in the right stocks of 30c - 40c can quite easily be done. Why close out at the end of the day when there is fun to be had after the bell.Sorry no charts needed just be quick and good with your Ecn's.

Some traders pay spreads Nasdaq traders can capture spreads! When you first see the opportunities you think to yourself am i seeing things? Surely i'm not allowed to do this am i?

Oh yes you are!

In fact its something i've let slip a little recently.So i would like thank him for bring it to my attention again.So that starting next week i'm going to get back in and have some more fun after the close.Many thanks.

 

[tunna]

trading dow jones

Hi
i am currently trading the dow with lower stop loss levels 7700 and looking for a bounce in the next fortnight with upper trading at 8600 and above, i hope im right and the market is back up moving forwards again



tunna

 

[dolton]

NASDAQ LEVEL11

naz....

I notice that Quote.com real time exchange fee forNasdaq Level 11 is $15/month, part of the Livecharts streaming packages on offer.......do you consider this packaged level of information is sufficient to "dip toes in water" for day trading the NASDAQ??

 

[Naz]

Dolton i dont see why not.

and many thanks for resurrecting market chat again.

Options thanks for CEPH

 

[options]

No probs, Naz.
I couldn't have made a decent gain on day trading a stock like that in the UK. Which was why I stopped UK shares in the first place. Got disheartened with the shenanigans from all and sundry and being ripped off at every turn.
Thanks to you and Mr charts for banging on about the Nasdaq.
It has given me a taste for shares again, and proof that relaxed TA and experience can work on nasdaq shares.
But I just know you got a better entry than me

 

[Naz]

Yes spot on.We had that entry nailed before the market opened.
But to trade it and get the best out of the fast morning moves,you've got to have level 2 direct access.

I'm so glad that someone else on t2w has seen the benefit of daytrading Nasdaq stocks.Dont others wonder what they're missing?

 

[JonnyT]

<i>Dont others wonder what they're missing?</i>

Yes, but whats next after that?

Is the grass always greener?

JonnyT

 

[oatman]

level2

Naz,

I've got a demo running L2. What do you suggest for an interesting share to follow please?

Cheers