Market chat

[Trader333]

Oatman,

I am not sure Naz will answer before the market opens but the 2 following are worth watching today on the Level II screen.

MXIM is currently trading down premarket by around $1 the primary Ax is Goldman (GSCO) and the secondary Ax is Deutch Bank (DBAB). When the market opens watch these two market makers on the screen. (You may be able to highlight them). I think that this stock will move very quickly at the open

The second one to watch is APOL currently trading down premarket by around $1.50. The primary Ax is (NITE) and the secondary Ax is Morgan Stanley (MSCO)

Again if you can highlight the two market makers just watch how they move around the screen at the open and again I think this stock will move quickly today.

Also watch for thickness of colours on the bid and ask which represent support (if on the bid) and resistance (if on the ask). The thicker the colour and number of colours gives a higher level of resistance or support. Also watch the Time and Sales screen for whether more trades are being done on the ask or the bid and whether the trades are increasing in price or decreasing.

Have a Good Day


Paul

 

[oatman]

OK thanks,

I've been playing in demo and tried to sell AVNX. It said you're not allowed to short a stock under $5.
Is that right?

Cheers,

I've got CSCO up at the moment.

 

[oatman]

Paul, what platform are you using? I'm demo on DirectAccessElite
and can't find a highlighter. Would make things a bit easier to follow

Cheers

 

[Trader333]

For Level II data I have been using esignal. You cant trade directly like you can with DAE but it is very good for observing the Level II action and is well priced.

Cheers


Paul

 

[Naz]

CEPH trade found by options

I should have taken a longer ride in CEPH whilst it closed the gap.Proof i suppose that even longer term traders can make good money out of Nasdaq stocks.For others the blue arrow was my entry.I rode it for about 2hours and made about $1200.Risk was $150.

The trade was taken with level 2 direct access.There would of course be no reason why the longer term trader could not have taken the same entry and managed it for a number of days.Then look at the reward/risk he /she would have had.About 23/1.

That would all have been down to getting a good entry on the level 2 screen and being almost 100% certain that the stop was not a pipe dream but obtainable.

The best level 2 platform at the moment in my opinion to get that fast entry would be lightspeed from e trade.Thats what you call putting t/a and level 2 together.

 

[be-positive]

Goodmorning TRADER333

This interested onlooker would like to know if you have entered any trades on either MXIM / APOL since Tuesday and if so were you successful :?:


one nosey member L :cheesy: L

 

[Trader333]

Hi Be-Positive,

The answer is No I havent. I have posted on another thread where I have said that I have stopped trading completley whilst preparing myself for trading US stocks. I used to trade futures until fairly recently and I was profitable but I was always unhappy at the speed in which futures could move with no warning, (on one occasion 350 points in less than 10 seconds). Around 10 weeks ago I decided that I wanted to trade US stocks and I have been preparing myself for doing this.

I still do not think I will be ready for around another 4 to 6 weeks before placing actual money on trades. I am never in a rush to jump into anything that involves monetary risk and so I have been putting in place the logistics to allow me to trade this market. This covers which platform to use, which broker to use and the timing of funding my account to allow pattern day trading as well as action plans for emergencies such as being in a trade I cannot close due to technical problems etc.

I treat my trading as a business project with clear objectives, information gathering, planning, preparation and resource allocation that would be required for any successful project. This also helps me be disciplined which I consider an important part to succesful trading. I also recognise the value of being coached from those who are more skilled than I am before I venture into paper and finally real trading.

Cheers


Paul

 

[oatman]

Paul,

I'd be interested to know how you're getting on. I've been toying with the idea, as you're probably aware from my posts. I just emailed e*trade as I couldn't find the platform Naz mentioned. Also didn't like the only commission rate mentioned, £9.95.

Cheers

 

[Mr. Charts]

I hope you don't mind me butting in, but MXIM was one of my early trades on Tuesday when I shorted it from 39.45 to 39.08.
It was a 24 minute "swing" trade so no hectic scalping or momentum run, just nice easy stress-free money.
It's a very nice trading stock being on my secondary core list and frequently presents good high probability trades. It often trends well and has good intra-day travel range, just what a trader likes.
Add a bit of news about the stock and you've got a good opportunity to bank more profits.
APOL was also on my watch list and presented an easy pattern entry and profits, but I was concentrating on MXIM at the same time, so wasn't trading it.
Both APOL and MXIM were wise pre-market choices on Tuesday.
Hopefully some people here paid attention to the help Trader333 gave and made money.

 

[Trader333]

Hi Oatman,

I am still a few weeks away yet from where I would consider myself being ready to trade the US markets.

Try this link for Lightspeed:

http://www.etradeprofessional.com/PageStructure/mstOurTechnology.asp

Thanks Mr Charts for your feedback it is always good to know that I was somewhere near the right track on Tuesday.


Cheers


Paul

 

[Mr. Charts]

Trader333,
My pleasure.
It looks as if we're on the same wavelength what with both those stocks and the comments on the property thread !

 

[Naz]

What now for the semi's?

 

[Naz]

I have never looked at commission rates only on the service and the platform i'm trading.If you're making good money you want the best.Every 1c saved in a fast execution saves me $10.Dont fall into the trap of thinking about execution costs.Bad executions, cost $$$$$$$$$.

One of the best if not the best level 2 platforms for trading the fast opening moves is lightspeed.You can have three level 2 screens side by side.Everything is hot key'd.You can trade three moves at once,follow them and get in and out faster than anyone in the world.Learn all the proprietary orders,use the ones you like and bingo no one will beat you.

When the moves done,you'll see it first on the level 2 screen and be out,others will be still be looking at their moving averages, oscillator divergance and what ever else they like and the sb's might be still trying to make up the bias they paid.

 

[Naz]

These intense morning moves mentioned by Mr Charts, myself and now it seems Options who has also got the knack of finding them,can all be traded with smaller accounts.(ie forget the $25k rule).Long used as an excuse by many as why they cant trade the Nasdaq.

All you have to remember is not to do more than 3 round trips in any 5 days in the same stock.You just find another stock to trade.

By the very nature of these moves you probably only do one round trip to make your money.Also every day brings up new candidates,so the likelihood of trading the same stock three days in a row could be a little remote.There are no excuses now $1 runs are what you're looking for,just like Options CEPH play.Companies like e trade will open accounts here in the UK for as little as $2,000 and give you a Nasdaq level 2 screen.Get good at it and move up to lightspeed with the same company.Courses on the homepage of t2w will show you how to find these stocks and how to trade the Nasdaq using the level 2 screen.

 

[options]

Thanks for the mention Naz. (I'll have to duck now when I go through doors. lol.)

I am having better runs on Nasdaq stocks than most of the UK stocks I used to trade.

I think the logistics of UK v USA should be looked at for a moment.
Very simply. There will be more players into most of the nasdaq stocks than any ftse 100 stock (with the possible exceptions of Vod and BP.) I don't know what the ratio is, but common sense says that more people will be buying and selling into the usa, hence, more movement, more liquidity and more importantly, more opportunity to profit. This makes T.A. work better and a stock will behave more predictably. (Well, it has so far for me.)

But, knowing which way a share will go, doesn't mean you will automatically make money. It has to be traded first! Getting in at the wrong time can cause your pocket to suffer extreme pain if the timing of your entry is wrong. T.A. works, but it can be like using a brick to open a walnut.

I have always found the 'when' to enter a trade the most difficult part of trading. Not so much for eod trading but for intraday. ( I am inherently a intraday trader.) Not adverse to holding for longer, but the control freak side of me doesn't like nasty overnight surprises.

I can see that rather than carry on using that brick to open the walnut, I will have to start using the correct tool designed for the job. A pair of nutcrackers. Or in this case. L2.
After I learn to use it properly, it should increase the percentage of correct entry points.

As my mentor once said to me regarding the choice of charting software. "Would you use a bent screwdriver over the precision made metal scalpel to perform heart surgery?"

 

[Naz]

Good post Options.I'm just going to borrow some quotes,i hope you dont mind.

"I'm having better runs on Nasdaq stocks than UK stocks i used to trade."

This is absolutely true.Isn't it about making profits and you can only do that if a stock moves.

"The t/a works better and the stock moves more predictably."

This makes it easier to find and trade various set ups.

"Level 2,after i learn to use it properly,it should increase the percentage of correct entry points."

This is correct the Level 2 direct access screen can help find and instantly trade those key areas when its right to enter or exit a stock as well as lightening fast executions that will allow tight stops if required.

Options CEPH play was a nice morning move and the entry was instantly obtainable on the NL2 screen.No skewed quotes when it turned,just true market prices and instant fills.OK day traders took their money and said thanks for the morning run,but that entry was still a great one for the longer term trader wanting to hold for some days.That same entry would have shown about a 11% profit if held for the rest of the week.

Nasdaq level 2 trading accounts can be opened now,here in the UK with a minimum of $2,000.

It has been said that one of the things that tends to hold people back from success is them selves.

Of course ANY trading can also result in losses.

 

[Naz]

INTC follow up.Notice the small island at $20.I always keep an eye on MSFT and INTC.Many times they can help tell things in advance.

 

[Simon]

'Nasdaq level 2 trading accounts can be opened now,here in the UK with a minimum of $2,000.'

It seems logical that if you've only got the minimum $2k, or thereabouts, that you're prepared to trade with, then L2 should perhaps be avoided, at least in the short term.

 

[Naz]

Simon,

The post was to show that its as easy to trade the Nasdaq here in the UK as any other market one would want to trade.To many times people would say ooooooh i cant do that because......

It was to try and negate some of the arguments that are put forward as to why one shouldn't get into it.

Level 2 Nasdaq is for every style of trader.However, they all use it slightly differently.You learn to use it and take the best of what it has to offer and use it with your style of trading.

Many just make it a gentle entry and exit direct access tool,giving them the best fills,with tight stops.just looking for the best point to get in and out for a move that could last the week.Others use it to trade the fast market open which can lend themselves to quick moves.Many others use it as another confirmation about certain levels.The list goes on and on,everyone uses it slightly differently.

To many that run it down however dont have a clue how it works.If they learnt it they might just find that it was another tool in their trading tool kit.

 

[Pollux]

Naz
Hope the markets are treating you well. Just wondered what your latest thinking is on platforms for trading Nasdaq stocks, ie do you now go through a UK firm for direct access? Shame on me I have been doing a spot of futures trading on the e minis recently, nice and simple for my cluttered brain...did you see WSTL hit 12 the other week? Shame I sold at 5