Market chat

[Naz]

Hi Pollux.

Hey i just checked out WSTL.What a nice run.

My thinking on trading platforms is this.Lightspeed from e trade is streets ahead of anything when it comes to level 2 Nasdaq.I traded it a few years back before it was available to the public.However its now owned by e trade and its being offered here in the UK.

This is a real boom to UK day traders.It is an unbelievable day trading platform.You will hear weaker souls say stay out of the markets for the first half an hour and let it settle down.What they mean is that they're so scared of their own weak trading platform that they couldn't possibly trust it in fast moving markets.

Lightspeed is the opposite.It is so quick, so fast and so versitile with its orders that it gives you the confidence to trade the market when the strong moves are there.

However i know that getting there can take a little while and with this in mind e trade are offering 2 other platforms to trade the Nasdaq.A CFD platform and another level 2 platform.

You found WSTL and have seen the %age moves that its made.Is there any other market to trade but the Nasdaq?

Now with accounts being able to be opened here in the UK with small amounts and the option of three different trading platforms.The way is set for every type of UK trader to benefit.For others that wonder WSTL is up about 500% this year.

 

[Pollux]

Thanks for the reply Naz. Who is your contact at etrade in the UK?
I have both a US & UK account with etrade so I will certainly take a look. What charting combination are you using at the moment btw? I have just started a 30 day trial with esignal...

 

[Naz]

Hi Pollux,

Anyone can contact e trade through [email protected]. Tell him that Naz sent you and he will go out of his way to explain how the Nasdaq can be traded from the UK.

 

[Cut Your Losses]

Hi Naz
Your quote above.
"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."
Is that right? I was under the impression that a day trade in ANY STOCK would count toward the total.
I can't find that definition on the NASD site. What brokers interpret PDT that way?
I've never traded US stocks (currently opening an account with IB).
Naz if you (or anyone) could confirm the above that would be helpful!
Thanks

 

[Trader333]

Cut Your Losses,

Try emailing the link Naz has given as this guy is from etrade who are offering this capability.

Cheers


Paul

 

[andrew2252]

Island reversal

Hi, I see that the Nasdaq Software sector index (GSO) has made an island reversal on the 15 min chart. Sorry I don't seem to be able to attach the chart.

Andrew

 

[oatman]

Don't look at it, trade it......

 

[Naz]

Cut your losses,

I was under the same impression as you were about a trade in any stock adding toward the total.However i asked Ramesh at e trade twice and said are you absolutely sure trading different stocks didnt add to the total and the answer was yes.However if it is important to you or anyone else do e mail him at [email protected] and ask him yourself.

 

[Naz]

Andrew,you're right well done.

 

[Mr. Charts]

This is from a broker friend in NYC.
NYSE rule 431 allowing trading with $2000 is out of date and has now changed in line with Nasdaq rule 2520 and you are limited to three round trips per five days in any stock, not the same ones, unless those trades amount to less than 6% of total trading.
Please note these are not my thoughts but are certainly exactly in line with my understanding. I cannot vouch for their accuracy, I am merely passing them on from an excellent source.
My opinion is that trading on $2000 at 50 % margin hardly makes trades worthwhile anyway if the commission is as high as others have quoted here.

 

[Cut Your Losses]

Trader333, Naz & Mr Charts
Thanks very much for your response.
Its encouraging when seasoned traders are prepared to help the less experienced.
Personally I won't be restricted by PDT rules, but I do think it is imperative to understand what they actually mean!
Tradesmart!

 

[Naz]

I agree with Mr Charts that trading with $2,000 is hardly worthwhile. Of course the understanding of these rulings are not from us but from others in the brokerage business.

By pure coincidence i have just received an e mail from a US broker yesterday that is still talking about trading within a larger companies own account to get around the $25k rule.This is a little about what they said.

"To provide those who don't have the minimum $25K requirement to trade without restriction. In addition, members will enjoy the additional benefits explained below.


$2,500 minimum deposit

Trade with no limitation as to the amount of executions daily

Up to 10 times buying power.......

and so it goes on.

So to my mind whatever the rules may say there are still ways to get around it,the only way to find out is to contact your own friendly broker and see what he's offering.ie do a little homework.

 

[Naz]

I'm just doing my homework and looked at AMGN.I wish i had seen and traded one of my favourite type of morning gap plays the other day.

Look how it gapped,couldn't get through $63 and you can bet that one spike through it was just an odd few trades going through.Thats when you need a level 2 screen to see exactly whats happening.Then the collapse straight into $60 (a decade number).

A nice hour and a half move in a big liquid stock and thats your profit for the day.Normal 1000 share daytraders would have taken $3000 out of that move and because of its liquidity the large players would have had no trouble trading 5,000 and 10,000 shares giving them $15,000 to $30,000.profit.

All of them would be using NL2.A classic morning move.

 

[Naz]

Just for interest here is the latest chart of MSFT

 

[options]

At an interesting point for msft Naz, thanks for posting the chart.

I would be tempted to go long at this point if it can hold the 24. It's due a turn imho. Simple targets to 25 then 26. But it hasn't quite closed that large island yet, and going into the brief bank holiday could well fall to fill it and then set itself up for a run up (take out the suckers) jump after the holiday with late afternoon trading. So, down to about 23.50 before it reverses? As always I would trade this how the rest of the market(s) were trading.

'When David Beckham isn't playing footie a few people have said that he enjoys traveling. Particularly by train. A recent quote in the papers had him saying that he likes to get in and out of Victoria whenever he can.'

I only mention this in passing because it leads into the recent Ceph trades quite nicely. The last few weeks I have been in and out, (at key points) more times then Beckham. Even been holding for a few days here and there, which had become alien to me in truth. The reason being these Nasdaq stocks really are more transparent. Dell, which I mentioned to Naz the other day gave up 2 dollars over a gentle 4/5 days without me having any L2 experience. (Incidentally, I think it is about to regain those 2 dollars if it can hold the 30).

How's that Naz? I'm even beginning to talk like a yank... 'Come on you Soxs'. Nah; doesn't have the same ring as gunners.

Trade sensibly everyone.

 

[ZigZag]

NAZ.
A good and interesting chart which demonstrates one of my set ups. The Fib line confirming a major resistance line which the price has failed three times to penetrate.

 

[Naz]

Hi Guys i just picked this up.

Microsoft (MSFT) CEO Steve Ballmer said he was
selling some of his 471 million Microsoft shares for personal
reasons.

 

[ChartMan]

Come upon hard times no doubt. I wonder if the "fat cat " syndrome prevails in the USA, or do they " earn " their wedge?

 

[Pollux]

Chartman
You can be quite sure they earn it at MSFT: they almost invented the 'valley' culture of 18 hour days & pizzas on the go writing code.
Can't speak for the chaps Brentford way but I can for the chaps Seattle way...
Thanks to all for useful commentary on this thread which I have now signe up to.
Best to all
Px

 

[Naz]

An interesting thing on the Nasdaq has been the interest in the bigger named internet related stocks.VRSN,EBAY,YHOO,CTXS,AMZN.