Best Thread US day traders thread.

[dvdh]

Hi gang.
What order types do you use when you enter, exit and exit on stop?

I use limit to enter, limit to exit (or if I want a quick exit i would use a market) for stops I tend to use market .

I would be interested to know what other people use.

Hi Samtron

Thought I would answer your post as a very relevant question which is often neglected by newbies as they first have to grasp this trading lark, but using precision execution is a must if you aspire to making it.

At first we are all guilty, not on purpose but through ignorance, of the potential to use the Direct Access Level 2 platform to its best abilities.

For the 100 share traders I don’t think finding liquidity on L2 is an issue, but sometimes with a market order, you’ll get routed to an MM who will fill you at the worst price possible. Errrrggh!!

I was guilty of always using market orders, but found slippage too great, even when using smart routing. Market orders are used due to impulse, limit orders are used because of planning.

However, I do use market orders in certain circumstances. Sometimes to take a profit or as a Stop.

Whilst the action is slow on L2, I will be planning my entry and putting limit orders where I want to get filled. Mostly between the bid and ask price.

When entering a trade to go long, and a stock is trading strong to the upside and the offers are fading fast, I will be going high bid by posting a leading limit order a few cents above the best bid.

When selling and bids are fading fast I will again use a leading limit order or will be hitting the bids. Sometimes if not filled and I want out then I will use a market order routed through ARCA or ISLD. I find ISLD best in very fast moves.

One problem I have found when trying to enter fast moving stocks is that they can quickly run away from you and you won’t get filled. Often, when you do get filled, the stock has reached a resistance area where buying has subsided and selling pressure has increased. The move may well be over, and you are now too late to take the trade. I will only give it 2 chances to get filled, i.e. use another leading limit order to get in and if not filled, I will not enter again. This way you are not chasing stocks.

Hope this makes sense.

Regards
Lee
p.s. BRCM and MRVL were stated as King and Queen of the tech sector last night by Jim Cramer. Traded up pre-market so worth watching them today

Hi Lee,
what you say about selling the bids. Especially if you go short. On ARCA you don´t need an uptick, because you´re going through the ArcaEx. That´s a different exchange and doesn´t have the uptick rule. I believe this is the same thing with ISLD.

What you say about fast moving stocks, sometimes with big spreads!. If the set-up is good. I´ll try to give some bids and I´ll go offered. With these stocks you (Me in this exampe) just have to take the risk, because if they go, they go. Take a look at ENER yesterday! There was a spread. But as soon as the move starts going down, everyone pulls his bid, and within 2 seconds it trades 50 cents lower! So IMHO, it´s worth the risk!

-Dave.

 

[PitBull]

What you say about fast moving stocks, sometimes with big spreads!. If the set-up is good. I´ll try to give some bids and I´ll go offered.

-Dave.

Thanks for the reply Dave. Do you mean you sell on the ask?

p.s. I had a duff Graphics Card!

 

[PitBull]

Hi gang.

Chart below of MSFT (IB feed with QT)
Friday and today to show the price spike i was referring to in an earlier post today.
Two price spikes one friday one today.
Comments appreciated.
Also I have noticed that the backfill facility with IB can often can give a "backfill busy message" which makes it difficult to pull up a new chart of a stock you haven't been watching all day!

Hi Samtron

No spikes in my data.

 

[samtron]

Mystery

Hi Lee/all
I won't be trading today
I have spent some time this morning looking a various charts from different vendors namely IB, Prophet, Bigcharts and to my surprise they are all different !!!
So basically what a trader sees depends on the vendor which is crazy! (IMHO)
Must solve the mystery before I put on another trade; any feedback would be appreciated.

The differences can be subtle but would be enough to screw up the set-ups.

 

[Gadgetman]

VLO again

Remember I mentioned the other day they have nice steady climbs up?
Again today - nice run, just under $2 in half-an-hour . I'm out at 58.22, seemed to hit resistance at 58.30 - maybe it's just a pullback so I'll keep watching. Only problem is it seems to take 5-10 seconds to get a fill.
And delays on TradeStation Level2 data again made me miss a 70 cent run up on AAPL

 

[PitBull]

Its been said before, but isn't MRVL marvellous!

Nice trade Dave. Just don't give it back. If you take a loss. Stop trading today.

 

[samtron]

Remember I mentioned the other day they have nice steady climbs up?
Again today - nice run, just under $2 in half-an-hour . I'm out at 58.22, seemed to hit resistance at 58.30 - maybe it's just a pullback so I'll keep watching. Only problem is it seems to take 5-10 seconds to get a fill.
And delays on TradeStation Level2 data again made me miss a 70 cent run up on AAPL

Nice work Gadgetman- time for a starbucks me thinks!
5 to 10 seconds for a fill is brill compared to what IB can take (40 to 60 seconds sometimes!)- (might be my set-up still investigating)

 

[Gadgetman]

Its been said before, but isn't MRVL marvellous!

Nice trade Dave. Just don't give it back. If you take a loss. Stop trading today.

You'll be telling us AMZN is amazing next

 

[Gadgetman]

Nice work Gadgetman- time for a starbucks me thinks!
5 to 10 seconds for a fill is brill compared to what IB can take (40 to 60 seconds sometimes!)- (might be my set-up still investigating)

I used to use (spit) IB (/spit)
Never had those sorts of delays on fills.

Double-check your internet connection is ok too, you never know!
- adslguide.org.uk has a speed test.

 

[jimmy1jag]

You'll be telling us AMZN is amazing next

While we're doing bad puns; there were some nice plays on PLAY this evening. Arrff Arrff !!

All the signals were there on L2. Nice stuff! I've still got my L plates on for the time being until such time as I feel ready and confident. However, the other day I did have a trip to THE Starbucks and a couple of gallons of tea (although I did fall at the last!) which was extremely worth while. Just got to get on and do the right things now!

 

[Gadgetman]

Spot the deliberate mistake

I've been moaning about the TradeStation issue regarding Level 2, intermittently (usually first hour of trading) it can take up to 20 seconds to load the Market Depth data for a symbol.

Here's a slightly different take on the same problem, I was tempted to trade it.......(not really....)
Very obvious, but I'll still buy a pint (usual qualifiers apply ) at the meeting to the first one who responds with the correct answer

 

[PitBull]

I've been moaning about the TradeStation issue regarding Level 2, intermittently (usually first hour of trading) it can take up to 20 seconds to load the Market Depth data for a symbol.

Here's a slightly different take on the same problem, I was tempted to trade it.......(not really....)
Very obvious, but I'll still buy a pint (usual qualifiers apply ) at the meeting to the first one who responds with the correct answer

OK, you got me there guv. :cheesy:

Last price of 77.37 and inside price of 20 offered 28 bid, where did the other few cents go? Are the trades through these levels missing?

 

[Trader333]

I've been moaning about the TradeStation issue regarding Level 2, intermittently (usually first hour of trading) it can take up to 20 seconds to load the Market Depth data for a symbol.

Here's a slightly different take on the same problem, I was tempted to trade it.......(not really....)
Very obvious, but I'll still buy a pint (usual qualifiers apply ) at the meeting to the first one who responds with the correct answer

In my view this simply isnt good enough and I would consider changing to a different data provider for the Level II part at least.


Paul

 

[PitBull]

I've been moaning about the TradeStation issue regarding Level 2, intermittently (usually first hour of trading) it can take up to 20 seconds to load the Market Depth data for a symbol.

Here's a slightly different take on the same problem, I was tempted to trade it.......(not really....)
Very obvious, but I'll still buy a pint (usual qualifiers apply ) at the meeting to the first one who responds with the correct answer

And of course what has happened to the offer price, as could easily buy on the ask at 20 and offer it out on the bid at 28.

 

[Gadgetman]

And of course what has happened to the offer price, as could easily buy on the ask at 20 and offer it out on the bid at 28.

Yes - 1 trade a day would be enough

 

[PitBull]

Date for your diaries

Many thanks for all those who responded to my meet up request.

Please can you pencil in the following:

Date and time: Saturday 11th February at 6pm

Venue: Imperial China restaurant in China Town, West London
Address: White Bear Yard, 25a Lisle St, WC2.

Please see link for map and other useful information:

http://www.viewlondon.co.uk/info_restaurant_maps_8265.html
www.imperial-china.co.uk

I have booked the private function room for 15 people. but I can easily change this if anybody else wants to come along.

Its going to be a great evening and just to let you know, Naz and Mr Charts will be coming and also DVDH from Holland.

Many thanks
Lee
p.s. PM or email me [email protected] if you would like to come

 

[samtron]

Hi guys
Who is the joker at SBSH bid price .0.01 ask price 2000 (time 07.30) GOOG
I have heard about thinking +ve when it comes to your trading but thats a bit ott
anyway good luck for today!

 

[dvdh]

Hi guys
Who is the joker at SBSH bid price .0.01 ask price 2000 (time 07.30) GOOG
I have heard about thinking +ve when it comes to your trading but thats a bit ott
anyway good luck for today!

Hi Samtron,

In almost all stocks a couple of marketmakers are 0,01 bid and 2000 offer. That´s money for them when some (japanese - LOL :cheesy: ) trader buys or sells an outrage number of shares at the market. And pays up to 2000 or sells down to 0,01. That happens sometimes in the premarket. And then they just wish it´s a bad tick. LOL.

-Dave

 

[PitBull]

Sndk

As I write SNDK is still flying. I took the trade on the 1min as it was setting up its U move.
Entry 76.40 out 78.36. +1.96.

 

[mountainman]

hello US traders
i have just joined after training and mentoring from mr charts
it has taken me several months but with his help i am now trading for my living
mission accomplished but it was hard work
what a shame he doesn't write here anymore but the site bosses should ask him back
i have read through half of this thread tonight and like someone said its lost the master
i pay for his private site and get watch lists all day and example trades - big big help, but i feel loenly not talking to other traders so i joined here
i never have a loss making day
is that the way i.ve been taught or is that normal?
does every body trade on momentum and microanalysis systems or other ways?
i only do 5-10 trades a day
do others do more?
i get deeply absorbed in my trading but need frequent breaks like a world of my own
how about others?
any advice greatfully received
thank you
i'm sorry if all the questions arent appropiate