Q&A | NOV 2007
Q&A by Don Bright
Q&A by Don Bright BASIC SKILLS FOR DAYTRADERS Don, since you think (pure) daytrading is a limited style, then how do other daytraders make profits? Could you tell me some basic trading methods or skills for daytraders?— Anonymous I’m not against daytrading, but I think other strategies can augment your income. Our new people learn how to do “open-only orders” (OPG) on the NYSE. We enter about 50 stocks, buys, and sell shorts, based on fair value calculations. Then, when a few of the stocks gap up or down, they are filled only when the specialist is filled. Why not trade on the same side as the guy who’s been making money for 200 years? Our daytraders always have “outside envelopes,” the practice of having active bids a few pennies lower than the quoted national best bid or offer (NBBO) bid and active offers a few pennies above the sell NBBO, to take advantage of sweeps, either collecting for providing liquidity via ARCA, or joining the specialist again on hybrid overrides (exemptions and exceptions to the NMS rules).
by Don Bright
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