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James,
Traders Press at www.traderspress.com has some books in their catalog and
web site which offer insights to daytrading on NASDAQ. Two books I can think
of are
"ELECTRONIC DAYTRADING" and "HIT and RUN TRADING", the first book ephasizes
daytrading and the role of the market maker and how to use NASDAQ LEVEL 2
market maker screens to trade and find trends in stocks, level 2 quotes also
will list NYSE, and AMEX stocks with the depth of prices from main exchanges
as well as regional exchange prices, having this data enables one to see
upcoming price changes before the bid or ask becomes the best bid or asking
price.
As for market makers, with level two quotes you can set up each stock you
follow to show volume of bid and ask size and more importantly, the number of
times a market maker has placed the best bid or asking price. GSCO which is MM
symbol for Goldman, Sachs tend to dominate a number of Nasdaq 100 stocks, like
today for instance, GSCO was up buing DELL 48 times and selling 37 times,
which is rather active, but today was a fast moving market. Other MM's like
Merrill Lynch, Saloman
Brothers, Herzog, JPM, and Morgan Stanley are active in a number of issues.
Use a note book to compile a list of MM's which initiate coverage, upgrade or
down grade stocks, and not only will you know which issues and which MM's are
following a stock, but you can bet they will be active in those issues. Also I
find it good to keep a list and track price targets because once a price
target is reached either the firm upgrades futher or down grades based on the
stock meeting a price target.
William
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