We have discussed Payment for Order Flow (POF) and how High Frequency Trading (HFT) firms make money on your trades. We’ve shared how Maker-Taker affects the way that trades are executed. Now let’s see what you can do to improve your trading returns within this complex and often predatory environment. (more…)
A day trading guide on stock order types is a dynamic volume, as new order types are continuously proposed, revoked or falsely justified. As Nasdaq continues to develop, propose, then either revoke or justify new stock order types that continually benefit the select few, let’s review some of these recent order proposals and how they impact investors.
Nasdaq’s Proposal of the Extended Life Priority Order
Nasdaq proposed in November of 2016 a new order type they call the Extended Life Priority Order (ELO). This was shortly after the SEC gave approval for IEX to become the 13th US Stock Exchange. The ELO order type has been incorrectly compared to utilizing a time delay similar to IEX’s “speed bump”. (more…)
Given the complexity of the topic, it is difficult to find a best seller list for day trading books that you can trust. Finding a reliable source with values aligned with yours can be tricky. New and experienced day traders are always eager to soak up all knowledge and information available, as things always happen fast on Wall Street, and technology is changing even faster.
Even so, some basic age-old philosophies still ring true and we would love to share with you our insight into some of the best educational and interesting material for day traders from age-old classics to revealing documentaries set in today’s fragmented market environment. The following day trading book list is sure to enrich and enlighten an up and coming trader and even the experienced quantitative trader. (more…)
After speaking with several experienced traders, one thing stands out as top of their wish list: limits on payments for order flow. Payment for order flow (POF) is a widespread arrangement, and one that’s been around in US Markets for quite some time. In fact, this practice dates back to the 1980’s with masters like the notorious Bernie Madoff leading the way. This system is an arrangement where a third-party firm pays brokers to send orders to them rather than to the open market. (more…)
Most traders begin their career as an individual, discretionary Day Trader. An individual learns from experience, and that couldn’t be more true for a trader. Once a trader has some experience under their belt, they may consider trading stocks from home. Certain circumstances could prompt this desire to work from home rather than your firm’s office; perhaps you are new to an area and want to work for a company located in another state, or maybe you are already settled into your dream home, and find yourself in transition searching for a new firm to call home but the one you want to work with is located miles away. Many trading firms offer their traders the ability to trade from home, or from their office. While there are many advantages to both, we’ll evaluate the pros and cons in both situations, the requirements for successfully trading remotely, and the benefits of working in the office with other experienced traders. (more…)