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  • Saturday, September 10, 2005

    NYSE Order Execution

    Some of my readers have asked what kind of orders I use when trading Nyse stocks.First of all I rarely use market orders.The only time I will use market orders is either if I am trying to test the market a little (Livermore style) to find out where the specialist is filling orders,or if I absolutely want out and don't care where I get filled.These fills can vary from not getting the price you anticipated,to getting filled at a much better price if the stock has a quick upburst/downburst.I don't much care for market orders typically. I will either use a limit order through SDOT or I will use the NYSE Direct+ to hit the specialist.If you use a Direct+ order you have to make it count because there is a 30 second frequency restriction to send another and that can feel like minutes in the world of scalping.(This rule still applies to individual stocks, but has recently been eliminated for ETF's).I will also use the ECN's to get price improvements or as entries and exits when I cannot get the NYSE order fast enough.One more thing to note specific to my own style of trading is that I don't typically like to offer out if I am long or bid if I am short.My reasoning behind this is that it can sometimes stop the momentum of the stock.In other words,if I want a wheel to keep rolling forward do I want to help keep it rolling or do I want to set up a roadblock for it.To help create the momentum you sometimes have to be the one getting things started and hit the smaller orders that may be standing in your way.As long as you are trading on the side of the Big Money then this is possible,just don't try to be a hero and go against the specialist because you will lose everytime.When you have that flow behind you it doesn't hurt to take out the 100,200,or 500 shares standing between you and a .25 cent winner.Now on the other hand if I see that there is strong support or resistance at a certain price level then I will be a little more cautious and possibly take some of my position off to book a little profit.I also use hot keys for all my orders because with my style I have to be quick on many of my trades.

    Order Execution page link for NYSE

    4 Comments:

    At 3:34 PM, Anonymous Philippe - The Newbie said...

    Where can I find more about specialist(ie, books)...how to spot them and trade that info? One more thing, maybe you've said if before, but what platform/broker do you use for trading?
    I've only been trading for about 8 months and you seem to be trading in and all other ball game. My broker doesn't offer me all those options

     
    At 7:01 PM, Blogger txtrader said...

    Hi philippe,

    I don't really know of any books on the specialist, but I have some pretty extensive material on how to read open book and find the specialist right here on the site,let me know if you need links,you can also use the search this site option. I trade through Assent(use to be andover trading)and use the Hammer/Anvil software.
    Feel free to comment for any other questions.

     
    At 9:10 AM, Anonymous Philippe said...

    Yes, I would be really pleased if you could post links about specialists!!!
    thankx...A LOT!!!

    phil

     
    At 5:50 PM, Blogger txtrader said...

    Phil,

    This explains fairly well how I find the specialist:

    http://mytradingroom.blogspot.com/2005/08/trading-style.html

    Reading the open book:
    http://mytradingroom.blogspot.com/2005/08/nyse-open-book-basic-how-to.html

    I'll be writing more on this as I have the time,but these should be a good start.As far as finding someone who offers nyse open book,I'm finding more and more that most "broker" don't.You'll have to check around on that, and I'll try and give some more info on that as I find it.

    Best

     

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