We have lots of experienced traders on MoneyAM who would be glad to help if you have any trading questions.

crocodile been thinking about trying a bit of day trading the indicies and was wondering about understanding trick/trin how you use it?.Is it even usefull and what other strategies do people use to try and beat the big boys at their own game.
many thanx ali

I'll ask a few if I may:
1. Do you & the other respected traders at MoneyAM think the rally since March is running out of puff?
2. Is there a good book available on level 2 trading? If not, why don't the MoneyAM team put something together? I have been on the Sharescope/GLOMTC trading workshop which touched on level 2, but I prefer books to courses, as you can go at your own speed and re-read things if you don't understand.
3. Is tape reading worth studying? I read 'tape reading and market tactics' by Humphrey B Neil, but feel that unless you really know what you're doing you're likely to put too many bad trades on to make the good ones pay. Also, and correct me if I'm wrong, but isn't tape reading superior to level 2 trading in that watching the tape shows real trades that actually take place, whereas level 2 shows orders (real or otherwise) at various price levels that can be quickly withdrawn if they were only placed to deceive and prices gravitate towards the order level?
4. What do you think about WMY at the moment? I'll declare an interest on this one; I'm short.
Sorry if I've asked too much, but a thread like this is too big an invitation to miss.
Thanks
ZOLTAR

Opportunity is just too good to pass up, so here's a question:
The building and construction sector.
Many have seen big rises and thats understandable due to
the property boom and housing shortage in the SE.
But many of these look quite pricey to me so any ideas
on a smaller player - cheaper too-
County and Metropolitian?
Any thoughts appreciated! Thanks!!StockBunny

Ali B Some interesting info on Tick Trin http://www.ftsedow.com/ta/ta.htm  I do not use it myself but many of my friends do!

Zoltar 1: My view is not at the moment.   2: I have not seen any good books or videos on Level 2, most I have seen are very elementary.   3 Level 2 tells you far more including Bots and the risk of not having an escape point in your trade. Re Level 2 Look at the link below for information on BOTS You do need Level 2 to see them http://www.ftsedow.com/info/info.htm Also see the link below for information by Mike Boydell on Level2 (You can scroll down the page) http://www.ftsedow.com/ta/ta.htm#level2   4 Regarding Wembley I do not trade it but looking at the graph I would have a stop loss in place and be prepared to get out quick This one could go either way! Would appreciate anybody else's views on the above D.

 

Stockbunny
Re construction
A sector I follow myself, Persimmon, Barrats and Wimpy hane all come off highs.
Since the beginning of September all 3 have shown negative chart signals with -123 patterns.
Still the housing market is still strong and the high dividends with low interest rates should insulate from large falls.
Currently I have no position in them at the moment but I do daytrade them quite a bit.


County & Metropolitan, chartwise I would not like to be long on it at the present time.

i have been looking at a company that has taken my eye of late the epic is AFN i dont now much about it,the picture of the share does look good an i have a little money that a granma left me in a jam jar...have you any comment pleese.

thank u a novice just starting out invester looking to day trade fuull time in about 10 years time.i would like to buy about 500 shares for a rainy day some one said phil me boots but i dont want to be to greedy i would like to leave some for other.some people say that a new person has bean in charge for some time and he nows what he is doing after taking over from some one that made a muck up and they called him a bald headed old git....i dont like people bean called names it is not veeery nice.
Have got to get back to my teletext television to update my picture on this firm.

rick a newbie

Croc, I appreciate your time and trouble in answering my question.I tend to agree with you on the wider basis with construction, many advisors are still encouraging 'buys' in this sector and it may seem unfair but it strikes me a bit like high tech was a couple of years back - being hyped too high and for too long - particularly for those NOT looking at trading on a very short term basis. County & Metro. needs more research on my part, but I have doubts.
Many thanks!! Stockbunny

Thanks stockbunny

Thanks for that, Croc. Lots of good info on those links. I agree about level 2 books. There's nothing. I'll just have to try and learn as I go.
Aside from my WMY short (stop in place - only a small trade coz this stock has a tendancy to gap) I'm flat at the moment. I agree the market's not falling yet, but on so many stocks I see bearish oscillator divergence. Also, the LOG charts of many indices (including FTSE, CAC and DOW, but not S&P) are up to, but not beyond, their long term downtrend lines. Am I giving too much weight to these? Should I stay with things while they're still inching up, because if you stay too long you give a lot back before it's clearly time to be out. I wanna go to the party, but I want to leave before there's any trouble, if you know what I mean.
After belatedly joining the rally, I've taken my (small) long profits and I'm just going to wait and see for a while. No position is a position etc.
ZOLTAR

btw my nephew told me a joke a few days ago.....a bloke goes into a cafe and says 'I'll have a crocodile sandwich please, and make it snappy'
Apologies.

What does 'cover' mean.
i.e. to cover my shorts or longs etc.

to cover your position means "to close your position"

ie if you are short 'have sold' 100 shares. then, when they have fallen far enough and made you very happy because you are short, you buy them back for less 'cover your short position' and pocket the difference. this is usually done on a mobile phone whilst down the pub with all your mates ;).

To 'cover' can also mean to cower behind the sofa under a very snug warm blanket sucking your thumb whilst the market moves against your position.ie A bit like my SPX shorts are doing at the moment! ;)

Croc

do you do anything with FX at all?? i wouldnt mind hearing how you approach that if you do.

cheers
fred

Zoltar, :-)

fredbear
Nope nothing with currency trading but my colleauge David Jones (Limpsfield Chartist) was a currency trader in the city, I believe he trades the Euro quite often as it tends to trend very well. I will ask him to say hello on here!
May well look at it the future as the TA I use for indices seems to do the same job.
Thanks
D.

Mega Bucks -- yeah, right! MM

:-)

Thanks fredbear.

I got a question for you. Why do most of the stocks on AIM have such lage spread between us the cutomer and the market makers.


Maybe we could set up our own little in house transfer agency adverttising here if we want to buy or sell......the two parties if they have the time could meet up outside fill in the transfer forms sign them them hand over da cash and hey bing no middle man any more !

good morning all, how does a company with a market cap of 4 million trade at the same price as a much larger company?

Mitch1967

Way back, when market makers (ex. jobbers) did exactly what was they were supposed to do - they made markets in securities. Widget plc might have been quoted at say 30 - 36. Six points on thirty is a large turn but it was (arguably) justified when the jobbers were actually making a market. Their profits came from the skill in matching the book over time and the turn could be warranted.

Today when so many markets are in reality matched bargains - and I am talking of fully listed and AIM stocks, not those officially designated matched bargains - there is no justification whatsoever for extravagant spreads.

These days business is simply just not transacted unless the market maker knows or believes he can match his position almost immediately. He will not "go out on a limb", be it short or long, as did the Merchant Ventures of old and that being the case there is today no case whatsoever to be made for spreads of 10, 20 or 30%. Although, at a squeeze, there could be a case that there is a lot of uncertainty involed in buying AIM listed stock, hence the spread.