Stocks & Commodities V. 25:5 (44): Q&A by Don Bright
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 your question to our website at http://Message-Boards.Traders.com. Answers will be posted there, and selected questions will appear in a future issue of S&C.
BASING MY TRADES
I don’t know what to base my trades off since there is no specialist to follow. Are there guys still making money based on specialist prints?
You need a nimble program that looks for five-cent moves in a stock and then hits it on a sweep, or have trigger points already entered to take advantage of a
sweep. Working pretty well, according to my guys.
Do your traders “scale out” of positions, or do they close all at once? Does it depend on their strategy or technique? —Trader92
Some do and some don’t, depending on the individual situation, and, as you pointed out, it varies depending on strategy. I do my “opening only” strategy with two layers entered, one for 2,000 shares and another (wider envelope) for 1,000 shares. When I get filled, my
automated program sends in a retracement order (for profits) for half of my position in each stock. I then
prefer to tape-read and get out of the balance manually, thus “scaling out.”