|
PureBytes Links
Trading Reference Links
|
Thanks good post.
Robert
, SHAWN wrote:
>Brian Massey wrote:
>>Stocks are attractive because there's so many liquid markets
>>available and if you can trade futures succesfully (even moderately)
>>(i.e. S+P) you should be able to trade a market like DELL or INTC or
>>MSFT or LU well using just Level 1 information. But I would make
>>certain that the reason why a felt I wanted to switch was to reduce
>>slippage and not some other more fundamental trading reason. I
>>would ask myself if faster execution is really going to improve my
>>bottom line.
>
>Here's my take on a couple of points I've seen so far in this
>discussion. First, the one thing I like about stocks vs. futures, and
>this is purely my spin, is there is no expiration. You can't play
>contango, backwardation and roll games, but that's OK by me. I never
>was good at those games anyway.
>
>Secondly, Brian wrote above, about trading DELL, INTC, MSFT, LU. In
>my opinion those stocks that are the most visible and liquid are the
>hardest to trade. Look at it from the standpoint of Goldman or
>Merrill. If you have 10 times the volume of trades in DELL as you do
>in WXYZ, wouldn't you put your best trader on DELL, and train your
>greener traders on WXYZ? I would. You know they have a bigger book in
>those big stocks, and more turns per day, so you know they put their
>best sharks on them. They just have more exposure.
>
>The final thing I have to add at this time is about information. When
>I started SOES trading I had moved over from futures trading. I felt
>in futures trading, the more info you have the better off you are. It
>was hard to get rid of that idea in SOES trading. But the simple fact
>was that the best traders in my shop were the ones who had no
>market opinion, didn't watch CNBC, didn't read WSJ, didn't care what
>the news was. They just traded stocks on momentum. It was really hard
>to clear my mind, not have opinions about what should happen, and
>have the discipline to let the prices solely guide me. But I became a
>much better Level II trader when I did that.
>
>Furthermore, some of the best money I made was trading stocks I had
>no idea what they wer, what industry they were in, what the news
>was, or anything about them other than their ticker symbol. We'd
>watch New Highs/Lows after 10:30 and pick up a flyer or death-spiral
>now and then and just go with the flow. And some of those flows were
>huge.
>
>I could write a book about what I've learned about Level II trading,
>and the games people play. Maybe I should ; > )
>
>Just my $0.02.
>
>*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*-*
>"It's hard to make predictions, especially about the future."-Yogi Berra,
Visionary, 19??
>
>"I think there is a world market for maybe five computers."-Thomas Watson,
IBM Chairman, 1943
>
>"640 K ought to be enough for anybody."-Bill Gates, Microsoft Chairman, 1981
>
>"With over 50 foreign cars already on sale here, the Japanese auto
industry isn't likely to carve out a big slice of the U.S. m
>arket for itself"- Business Week, 1958
>
>"TV won't be able to hold on to any market it captures after the first six
months. People will soon get tired of staring at a p
>lywood box every night."- 20th Century Fox's Daryl F. Zanuck, 1946
>
>"Don't sweat petty things. Don't pet sweatty things."-Anonymous
>
>"When you are courting a nice girl an hour seems like a second. When you
>sit on a red-hot cinder a second seems like an hour. That's relativity." -
>Albert Einstein
>
>Shawn Devlin
>mailto:shawnd@xxxxxxxxxxxxx
>http://www.netcom.com/~shawnd/shawn.html
>http://www.netcom.com/~shawnd/joke.html
>http://www.netcom.com/~shawnd/spar.html
>
>
|