My Trading Room: PXP Short:Chart

Tuesday, August 09, 2005

PXP Short:Chart

PXP showed up on my downscan.I took it short off a break of the 2 inside bars pointed out on the chart.I only had a risk of .04 cents, with plenty of orders behind that in the NYSE book.PXP was also making a new low for the day with a little downside help from the SPU5 futures.MACD was trending down on the 5 minute and 60 minute charts, my entry was based off the 15 minute chart.I missed a little chunk of the move, it was one of those quick downthrusts.Entered short at 38.57, covered at 38.25 for a +.32 gain.

5 Comments:

At 7:06 PM, Anonymous said...: Where do you get access to the NYSE book and how to intepret it? Thanks.

andy
At 11:42 PM, txtrader said...: Andy,
NYSE has some information on the open book, but not very explanatory. Try here first:http://www.nysedata.com/openbook/datafeed.asp
I have been thinking about implementing some kind of training tool on my site for just what you are asking, check back with me later on that.Are you with a broker now?Direct Access?They should offer the NYSE open book.
Thanks for your question. Doug
Email at txtrader91@yahoo.com
At 1:39 PM, Anonymous said...: Hi Doug,

I have a Fidelity account, but for NYSE stocks they don't have Level 2 or NYSE open book, only Time&Sales.

I have Direct Access, but it has various routes besides NYSE, such as ARCA and INET. It only shows the inside bid&ask for NYSE, not the full depth of NYSE limit orders like what your software provides. I wonder what online broker you're using.

Thank you for the generous and great information you're providing in your blog. I'm pretty new to trading (about a year), and have read lots of books/info and followed trading newsletters, but so far has only had very limited progress. I'm thinking about attending a formal training program, but there are so many of them to choose from, and my guess is that only a few of those trading seminars are good, if at all.

You mentioned about your trip to Houston for training. Was that a good traing school or trading seminar? Any information regarding a reliable and good coaching program is much appreciated.

Thanks,
andy
At 2:28 AM, txtrader said...: Hi Andy,

I take it your looking at the Level 2 marketmaker window which shows ,for nyse, the best inside bid&ask for nyse and also shows ARCA,INET(ISLD),BRUT,TRIM,CSE,and so on.That's the other window I look at and correlate with the NYSE open book.Fidelity probably does only offer that,but don't quote me on that.I don't use a traditional "online broker".I use a ssl connection that routes to new york.I'll have to check with the company I trade thru before releasing any names(you know legal stuff,I think it's ok,but I just want to be sure.)As far as training/seminars I personally think there a waste unless there actually hands on.Keep in mind I don't know your background,but my suggestion to you would be find a trader that will let you sit and watch or trade side by side with for a length of time,two to four weeks at least.If it's a certain "style" your looking for ask yourself what fits your personality,are you patient,impatient,laid back,or highstrung,and so on.Decide what style fits you best,find someone that trades that style profitably.I trained in a room of about 20-25 traders and found out who the most profitable ones were and learned from them.My first couple months involved one on one training, I highly recommend this route.I'm still trying to find out if there is training available through my outfit,I'll get back to you on that, are you willing to travel?

Maybe I'll start an online training.Hmmmm.

This should have been a post in itself,I think I'll make it one.
Good Luck, and I'll keep in contact.

Doug
At 4:17 PM, Anonymous said...: Doug,

You're right, my platform only provides the Level 2 marketmaker window and no open book for NYSE.

I agree that an extensive hands-on, one on one training with a good trader is the best way to learn (I don't believe those 2-3 days seminars can really help, they're more like marketing scheme to sell more products.)

I'm willing to travel subjecting to my personal circumstances. The real issue, I think, is to find a good, trustworthy and reliable trader to learn from, since so many of the advertised traders claim to be gurus, while in fact most of them are "fly by night" traders. I have some friends with horrible experience.

Consider the fact that many of the advertised trading seminars are quite expensive, I'd guess that the cost for an extensive one-on-one training with a good trader may be prohibiting to some degree. However, if the training is effective and productive, then I think it'd certainly be worth it.

Thanks,
Andy