Best Thread US day traders thread.

[Naz]

I should imagine that anyone day trading using spread betting understands the limitations of their trading platform and only takes trades to suit that method of trading.Hopefully many day traders using this method move to direct access trading and discover a whole new world of opportunities.

 

[timsk]

Hi Alan,

Hopefully many day traders using this method move to direct access trading and discover a whole new world of opportunities.

I can't wait!
If other spread betting Co.s are similar to D4F, the choice of tradeable stocks is small compared to a trader with direct access. Although GOOG is available, many of the 'hot stocks on the day' that you and Richard trade aren't. This almost certainly applies to BIDU - although I haven't checked. IMO, this is an even bigger drawback than the infamously wide spreads associated with SBing.
Tim.

 

[Naz]

Hi Tim,

You know as well as me that if you day trade the real big profits are on the US markets and the Nasdaq in particular.Direct access just gives you that extra edge in trading it and managing your risk.

Re BIDU for next week.Every US trader who didnt know about BIDU i reckon sure knows about it by Monday and it will be interesting to watch its performance and compare it with hot ipo's from the past.

I once remember a hot ipo that was floated at $20 finished the first day at $90 and after 5 days was trading at $500 until it then promptly collapsed.

 

[Naz]

Here is the post market trading on BIDU after the market shut on Friday.

 

[Naz]

I'd keep one eye on NYMEX crude its right up at the highs at the moment.

 

[Naz]

BIDU update.

A false breakout at $150 created by the 10am traders initiated a $34 fall.Still the sharp ones made $8-$10 runs on the run up before the collapse.Even with as little as 200 shares that was $1600-$2000 profit for the day.Whilst the 1000 share guys notched up $8,000-$10,000.

Naz

 

[Naz]

From this chart you can see how it broke from the $140 area,then after its failure rejected the $150 level on the re test and moved down all day.

 

[seguna]

Bidu

From this chart you can see how it broke from the $140 area,then after its failure rejected the $150 level on the re test and moved down all day.

Nazzy

PLEEAASE dont tell me u were up at 5:40AM? Is this part of your normal trading day or r u just an early riser?

 

[Naz]

I just get up early.

I know you were interested in how fast some of those stocks are.The key thing for Nasdaq traders is to use the right trading platform.The better you get with the direct access platform the faster the stocks you can trade.At the beginning of course you trade slower stocks and might use smart order routing but then you should move on and work your orders manually,by doing this you will spend more time watching the order movements and become better at reading the moves then as it slowly becomes second nature you find yourself trading faster and faster stocks.

The attachments are a fast trade from Fri along with the chart this time.Profit was 1522 points in 9 mins.

 

[Naz]

Although many Nasdaq traders do very well grinding out small moves during the day,some with very large size.It is a fact on the Nasdaq that stocks at times are going to run and i believe that if a trader is able to adapt quickly to those moves he/she has the opportunity of banking some exceedingly good profits.

Here are a couple of examples from yesterday.HANS is not short-able but just used as an example.

You can see in the attachments that right at the open both stocks move 2 1/2 -3 dollars each.After that BIIB goes side ways all day.So arguably the best time for the quickest profits was in the first half hour.

HANS does the same thing at the open and then takes a similar move after 7pm GMT for the evening run,giving a nice $3 fall in 20 mins.By accepting and working at ones trading style to catch those bigger moves when they come i believe the day trader is really enhancing his/her profit potential.Once the large move is over of course a trader can then change their style back to looking for the gentler smaller moves once again.

Naz

 

[Naz]

I'd keep one eye on NYMEX crude its right up at the highs at the moment.

As well as the ES and NQ futures i always like to have NYMEX crude on one of my screens somewhere.It sometimes comes in handy.Since this post some days ago on the thread it has indeed broken out.

 

[seguna]

Trading as a Part time Business

Naz

Resent as a PM as it was meant for Mr N..

 

[seguna]

NASDAQ Stocks

Naz or Mr C

How easy is it to short Nasdaq stocks? Are your setups geared towards finding stocks set to rally (longs only) or both rally and fall?

I have not done much shorting of US stocks but I hear there are all sorts of restrictions.

 

[seguna]

US Stocks

Has anyone traded US stocks using CFDs? Is it easier to short using CFDs or are the rules the same as for stocks?

Has anyone traded US stocks using SSFs (single stock futures)? Is is easier to short using SSFs or are the rules the same as for stocks?

:|

 

[Mr. Charts]

very easy to short
just took a dollar per share out of shorting CREE in 9 minutes

 

[Naz]

The Nasdaq is easy to short,just do it and if you cant the software will tell you so.I always get short if the stock is available to short.

I think trading Nasdaq stocks is so good for day traders that all these little rumours fly around.
ie i've heard this and i've heard that.Mainly they can be spread around from people who dont trade that market and think of reasons to convince themselves why they shouldn't.

The biggest one i smile at is, oh! dont trade the first half hour on the Nasdaq its to volatile.Thank you thats the best time for some of us.While everyone else is sitting back waiting for the wiggles and jiggles later in the day the astute day trader can zip in and make more than a days money in one trade and be set up for the day.

I attach my first half hour trade from yesterday.+221 points, on a quiet day with not to much happening.

 

[strewthmate]

CFDs

Hello Seguna

I've not traded CFDs yet but am looking to do so. At the moment I haven't quite enough to do a direct access acount justice, so I've been investigating CFDs as an interim. I think the important thing for me is that you get the market price without a extra spread. GNI offer prices along these lines and charges commission rather than a spread (+interest which I'm a little confused about!)

From what I understand CFDs are used actively by hedge funds for both long and shorts, and from what I've read they seem equally easy to short. Depending onthe provider most NASDAQ stocks seem tradeable

I'll let you know how I get on

Dave

Has anyone traded US stocks using CFDs? Is it easier to short using CFDs or are the rules the same as for stocks?

Has anyone traded US stocks using SSFs (single stock futures)? Is is easier to short using SSFs or are the rules the same as for stocks?

:|

 

[Naz]

I dont trade the US with CFD's but i know many that do.

The positives are 10/1 margin,i only get 4/1 margin.Ability to short at any time,Nasdaq rules dont apply.

Another plus is that some of the US stocks on the hard to borrow list are short able with CFD's.Dont ask me more about that, but i remember being on GNI's trading floor and being surprised that their CFD clients could short things i couldn't.That one thing can be a big plus at times.Account opening size for CFD's is from about £2500.
Add in the margin and that gives you approx $45,000 each day to trade with.

Which by chance allows you to buy approx 1000 shares of the stock i mentioned in my last post (RRGB). A $2.21 move that i showed in that post would make you $2,210 profit which unless my maths is wrong is 49% return on your CFD starting capital in a trade that lasted approx 15mins.Of course it should be noted that any losses would be magnified the same way.

 

[strewthmate]

Thanks

Thanks for expanding on the subject Naz

Couple of questions - do you swing trade US equities as well as UK? If so do you use the same set ups for your fast entries as the swing plays? Are the swing plays still level 2 driven or do you use more chart work for these

Cheers

Dave

 

[Naz]

Hi Dave,

Yes i swing trade both US and UK stocks believe it or not.
On a US swing trade i'll look at the big daily picture on a chart.Then i'll drill down into the intra chart and read the movement at the beginning of the day,then i'll get down to the level 2 screen and see if they're really up for moving this stock and i mean in earnest.If all the ducks line up then i'll take an intra day set up and swing it for the multi day run.

Putting your intra day knowledge to good use for swing trading is a real boost.

In the example you can see that i just use a plain old Internet trading account for my swing trades and entered the trade shown at 10.09EST or 15.09GMT.This is a fantastic time at the beginning of the trading day to get a real feel for what your stock might do that day.As you can see the stock never looked back for almost 14 trading days.