Comments on: Shorting NYSE Stocks

By: hilojack

hilojack — Tue, 27 Jun 2006 16:41:52 +0000

hey mike- great blog. Another way to increase ur chances of getting a short filled at NYSE is to use the ECNs, for those with direct access brokers. If u don’t have a direct access broker, I highly recommend getting one. More and more market participants are trading this way as frustration with front-running, non-filling specialists is at an all-time high. Besides, with the new hybrid market coming, this will be the future of NYSE trading. Use a limit order a few cents below the bid and you’ll increase ur chances of getting filled. Also, to get better pricing on NYSE pilot stocks (those not requiring an uptick) use a combination of market and limit orders to get your fills. Happy Trading!

By: Anonymous

Anonymous — Tue, 06 Jun 2006 15:54:56 +0000

If you want a sure execution, use a limit order above the ask for a long position. Ditto what Michael said for a short, limit order below the bid.

I don’t do it often but if the market’s fast and I want to get in.

By: Derek

Derek — Tue, 06 Jun 2006 06:42:11 +0000

Just a reminder: buying put options would be a nice alternative in this situation. It may not be as pure of a play, but at least you dont need hope for an uptick.
Thanks Mike–you have a real nice blog here.

By: Michael

Michael — Tue, 06 Jun 2006 06:03:04 +0000

Actually, I did the same thing you did. I put in a limit that was a couple of cents below the bid at the time. On a less volatile stock I would have used a market order but I didn’t want to risk it hitting that air pocket while my order was being filled. 90% of the shares got filled at the bid and the rest actually filled a cent above the bid.

By: Ugly

Ugly — Tue, 06 Jun 2006 05:21:02 +0000

Hey Mike,
Glad you got your fill, even if I didn’t get mine. Then again, maybe you’re part of the reason I didn’t get mine. That’s okay, all part of the great game.
So your TIE short was filled on a market order? Hmmmmm.
Thanks for expanding on my post - gives me something to think about.

By: Michael

Michael — Tue, 06 Jun 2006 04:40:55 +0000

I try to avoid the NYSE stocks too but so many of these commodity plays are there so it’s tough to avoid these days.

It’s good to see another trader who almost exclusively uses market orders. We’re a rare breed.

By: Trader-X

Trader-X — Tue, 06 Jun 2006 04:19:13 +0000

I feel your pain. I have had more issues recently with NYSE stocks - both entering and exiting, long and short, limit and market. I have really started to scale back on NYSE stocks because of it…

I always use a market order on NASDAQ - unless it is a really thin stock (I don’t normally trade those, anyway). I get great fills 99% of the time.