An NYSE Scalper's Tale - A Trader's Diary

Tuesday, September 12, 2006

Hybrid Is Coming! Will You Be Ready?

Gross: +$984.93
Net: +$757.10
Loss From Top: 0
Trades: 156
Shares Traded: 189372

Stocks Traded Today (net profit/loss):
Corning (GLW): +$299.79
Motorola (MOT): +$276.46
Home Depot (HD): +$189.75
Hewlett Packard (HPQ): +$79.30
Advanced Micro Devices (AMD): +$22.12
Citigroup (C): +$19.72
Walmart (WMT): +$9.96
Exxon Mobil (XOM): -$20.40
AT&T (T): -$119.64

No...I'm not talking about hybrid cars...I'm talking about the new hybrid system that the NYSE is currently testing.

Right now the rollout of Phase III is to commence at the end of this month and the new hybrid system is set to roll out at the beginning of next year. It's aim is to bring in a more electronic component to execution similar to Nasdaq, but will try to keep some of the advantages of the NYSE.

Last night I was poking around on a blog called Hybrid Talk, which discusses the current phases of testing and the final hybrid system.

MAN! There is a lot of things I really need to catch up on! I currently know a little bit about the current testing phases (in other words, I know just enough to get by), but going through the Hybrid Talk blog made be realize how unprepared I will be when this gets implemented.

I am also quite surprised that there isn't much mention both online and on TV about this new system. Maybe for the regular, longer term traders, the new system will not have too much of an impact, BUT for scalpers like myself, where execution and every penny counts, it has a tremendous impact.

Replenishment points, book sweeps, new order routing, new price improvement, new Direct+ restrictions (auto-ex), new fees, new types of orders...arrrghh! I'm gonna have to really sit down one weekend to go over everything about this new system from the NYSE site.

I really hope that when this Hybrid system gets implemented, there isn't too much of an impact on how I trade (well, if the impact is positive, then I'll be all for it!). If it does, that means I may have to start learning how to trade from scratch again.


Today was another day in which I was careful and tried to follow my trading rules. I started the day aggressively, but as the day wore on, I became more and more conservative (in terms of share size). I didn't even really notice how conservative I was being until near the end of the day.

Corning (GLW), Home Depot (HD), and AMD had some great intraday trends and I scalped whatever I could on all of their up-moves.

I hope I can continue with this same kind of consistency.

Surprisingly there were no good trades (trades in which I make $200 or more) nor were there any bad trades (trades in which I lose $150 or more).

Tomorrow is another day and one step closer to hybrid! (ahhhhhhhhhhh! I'm not ready!!!!!!)

Good Trades

Bad Trades


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