S&C Magazine Current Contents Q & A Aspects Of Trading
Since You Asked
Confused about some aspect of trading? Professional trader Don Bright of Bright Trading (www.stocktrading.com), an equity trading corporation, answers a few of your questions. To submit a question, post it on the Stocks & Commodities websiteMessage-Boards. Answers will be posted there, and selected questions will appear in future issues of S&C.
THE OPENING PLAY
- Details
- Parent Category: Q & A
- Category: Aspects Of Trading
- Written by Don Bright
I was wondering if you could help with a couple of things. You have written about your opening play a couple of times. Now that we seem to have 24-hour trading, with electronic communications networks (ECNs) and so on, is that play still working? Are there any major changes you can address that I may not know about? In addition, if you have time and space, could you please explain again how you see the end-of-day shares that are being bought or sold ahead of time? How can I get this information? Is this a special privilege? Is it something that has to be paid for? Thank you. — eqtyguy2008
PRICE PRECEDES NEWS? HOW?
- Details
- Parent Category: Q & A
- Category: Aspects Of Trading
- Written by Don Bright
Don, I have read a lot of your work in Stocks & Commodities, blogs, and other places. You seem to have a pretty good handle on the nuances of stock trading. This question may seem off the wall. I watch news very closely. I rely on news to make my buying decisions almost exclusively, and would like your feedback on two things, axioms, basically. “Price precedes news” — how can that be? And “Buy on rumor, sell on news.” I don’t get it. I hope you understand my question. This really has me baffled. —From xttrader1982
ABOUT THE TRANSACTION TAX
- Details
- Parent Category: Q & A
- Category: Aspects Of Trading
- Written by Don Bright
I keep seeing online discussions of the new, proposed transaction tax. The things I have read make it seem like no big deal, a number around a quarter of 1% for each trade. I can see active traders paying a bit extra, but isn’t this just another cost of doing business? What are your thoughts? — fxguyandgal
Thanks for your insight over the years. I read a discussion of this new transaction tax that is being proposed. Will this have an effect on your traders? My broker hasn’t given us any news regarding this at all. — tradethemall
ACTING ON NEWS: FROM DON BRIGHT
- Details
- Parent Category: Q & A
- Category: Aspects Of Trading
- Written by Don Bright
Over the years, I have received dozens of questions about “news” stocks, news in general, specific news items of interest to traders. One of my top people, Bright Trading remote manager Cash Coyne, has put together a presentation he will be using in our training programs. Here’s a portion of it.
How to prepare for and act on news in your trading:
STOP ORDERS: A CONVERSATION
- Details
- Parent Category: Q & A
- Category: Aspects Of Trading
- Written by Don Bright
Who are the “they” who can see stop orders? I read a lot of comments about how “they” run your stops. I’ve always been curious about the dynamics behind this belief. I understand there are certain key price levels at which a large collection of stop orders are likely to be sitting (stop-loss orders for countertrend traders and orders to initiate or add to positions for trend-followers), and a party desiring to execute a large order to sell into strength or buy into weakness would do well to take advantage of the liquidity offered by all those stop orders turning into market orders.— NoDoji
DB: I suppose “they” would apply to the New York specialists for some of these orders. I say “some” because there are various ways to input stop orders. For hard stops on the Nyse, specialists are responsible, since they are subject to tight guidelines on how they execute and cannot summarily execute them at their own discretion.
