The Nasdaq Trader's Toolkit [Hardcover]

M. Rogan LaBier (Author)

Book Description

ISBN-10: 0471404039 | ISBN-13: 978-0471404033 | Publication Date: December 15, 2000 | Edition: 1

Nothing has changed the markets more in the last few years than the advent of direct access, the combination of NASDAQ Level II quotes and direct order routing which together enable savvy traders to "hit" bids and offers and go up against the market makers. But just having access to these tools is not enough. Knowing how to use the tools-quickly and expertly-is key. In The NASDAQ Trader's Toolkit, a former market maker reveals the secrets of NASDAQ trading systems.

Editorial Reviews

From the Inside Flap

Nothing has changed the markets more in the past few years than the advent of direct access. If you have a computer and a phone line, you now also have the ability to make your own trades in the stock markets-and get a jump on the market makers themselves. But just having access to these tools is not enough. They all work differently! And use of the wrong execution route can waste time and turn a gain into a substantial loss. Knowing the specifics of execution-which routes will work fastest and when-is vital to success as a trader. In The Nasdaq(r) Trader's Toolkit, a former market maker reveals how they all work-and the secrets to making the most of them.

Direct access is made up of two main components: the Nasdaq Level II Quote Montage and the order routing systems with which you can buy and sell securities. These are tools that enable you to buy at the bid, sell at the offer, and determine the strength and direction of a stock before it moves-allowing you to enter and exit positions more quickly and easily than the market makers themselves. But how do you get the best fill?

The expertise in this invaluable book will help you move to the next level in your trading by offering practical nuts-and-bolts insights on the mechanics of the market that can benefit any plan-from the basics of SuperSOES, SelectNet, and the electronic communications networks (ECNs) to defining Level II and learning to interpret it. Discover how to route your order to get the quickest fills and execute with confidence.

Practical, straight to the point, and comprehensive, The Nasdaq(r) Trader's Toolkit will help you master the new tools of the trade and learn which route to take in any given situation-the road map lies before you in this indispensable book.

From the Back Cover

MAKE DIRECT ACCESS EQUAL TRADING SUCCESS

"LaBier has compiled a fascinating study of modern market execution systems. An instant classic that should find a prominent home on every trader's bookshelf."-Alan S. Farley, author, Master Swing Trader, Editor/Publisher, Hard Right Edge

"The Nasdaq(r) Trader's Toolkit is an absolute must read for anyone who is serious about trading in today's competitive market. Don't trade without reading this book!"-Ken Wolff, founder and CEO, MTrader.com

"A very important book on a topic too often overlooked by new and even experienced traders. Delightfully written with many splashes of humor."-Allan Jan Baird, PhD, author, Option Market Making and Electronic Trading Masters

"No other stock trading book on the market today offers the depth and clear explanations of the different Nasdaq execution tools available to the individual. If you're already trading Nasdaq stocks, don't make another trade until you've read this manual!"-Tim Bourquin, cofounder, The Online Trading Expo and TraderInterviews
* Save money off every trade-winner or loser-by learning Superior Execution. Learn how SuperSOES, SelectNet, and the ECNs really work, including active and passive ECNs as well as controversial "Hidden" and subscriber orders. Eliminate slippage due to routing mistakes
* Get the inside scoop on reading Level II quotes from a real Nasdaq market maker
* Learn how the Ax (i.e., the institutional buyer or seller with a large order to transact) really thinks

See all Editorial Reviews

Product Details

• Hardcover: 224 pages
• Publisher: Wiley; 1 edition (December 15, 2000)
• Language: English
• ISBN-10: 0471404039
• ISBN-13: 978-0471404033
• Product Dimensions: 9.3 x 6.3 x 1 inches
• Shipping Weight: 1.1 pounds (View shipping rates and policies)
• Average Customer Review: 4.2 out of 5 stars  See all reviews (17 customer reviews)
• Amazon Best Sellers Rank: #332,253 in Books (See Top 100 in Books)
  • #52 in Books > Business & Investing > Industries & Professions > E-commerce > Online Trading

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Customer Reviews

Most Helpful Customer Reviews

23 of 24 people found the following review helpful:

5.0 out of 5 stars only book dedicated to execution, September 11, 2000

By 

David Keppel (Fla, USA) - See all my reviews

This review is from: The Nasdaq Trader's Toolkit (Hardcover)

This is the hardcopy version of the excellent e-book the "Tools of the Trade." Everything you need to know about execution. Including SuperSoes, SelectNet, Soes, all ECN's. It is the best reference manual I've ever seen. Don't know why they decided to publish in paper.,. Author is former market maker, used to head MB Tradings' trade desk. You can see him at all the trade expos -gives talks about execution. Knows his stuff. Wish I had the book when I started trading direct! Would have saved some of lo$$e$ :)

17 of 17 people found the following review helpful:

5.0 out of 5 stars "Only book dedicated to Order Execution"..., January 30, 2001

By 

Peter Briski (Chicago, IL, USA) - See all my reviews

This review is from: The Nasdaq Trader's Toolkit (Hardcover)

That's what the site (www.nasdaqtraderstoolkit.com) says about the book. I was skeptical, but I bought the book anyway for two reasons. I am fairly new to direct access trading, and I saw the author at an Expo last year. I was very impressed by his information packed seminar - usually these things are filled with sales pitches, hype and hyperbole - but his seminar was conspicuously lacking fluff. It was full of real, solid information. In fact, too much information for such a short venue, so I decided to buy his book. I should first of all explain that I spent years trading in the pits, but for the past decade or so, I have been trading stocks, most recently with a discount online broker. It took me a long time to make the move to direct access, and at this point, I would never go back.

I want to tell any beginning traders out there that if you are considering making the move to direct access trading, you MUST read this book. This is just my personal opinion, but the book has made such a considerable difference to my trading profits that it would be unfair not to share my praise. The author has done a fantastic job of explaining Level ll and the order execution routes in every day language. Unlike the typical books which give cursory treatment to the realities of direct access trading, this book covers all the actual mechanics of it - from how to interpret level ll, to which routes work best *when*, to the special margin situation which applies to "pattern day traders."

I am so glad that I bought the book. Because, when I made the move to direct access, I was really lost! And that was my worst fear. I worried that when I started trading direct that I wouldn't be able to execute well, and would be confused by level ll (information overload). My worst fears were realized quickly when I started trading direct. This book stopped the madness. I highly recommend it to anyone who trades direct, or is considering trading direct.

I am convinced this book will become an industry standard. There simply are no other books that even come close to explaining the nuts-and-bolts of utilizing the direct access tools. The writing is even humorous and comprehensive at the same time, so it is not the deadly boring tome that I was expecting. It is an enjoyable read jam-packed with tools you can use right away. Somebody once told me "the best trading plan in the world is useless if you can't execute it." This book will show you the Hows like no other.

This review is my way of saying thank you to the author, who has done a truly amazing job. This book has paid for itself so many times that it would be hard to explain. This book may well become your best friend - especially if you already know how to trade, but are new to the tools of direct access trading. (Rogan, if you read this you'll remember me from my "secant plan" story - keep up the good work!)

8 of 8 people found the following review helpful:

5.0 out of 5 stars Fill, damnit, fill!!, February 4, 2001

By 

Jay Lieberman (usa) - See all my reviews

This review is from: The Nasdaq Trader's Toolkit (Hardcover)

I'd like to reccommend the following book to anyone who is using a level ll entry system. The book assumes you have a trading plan (quite an assumption, huh?) and focuses on what order routing options are most appropriate in given market conditions. Anyone who's ever pounded on his or her desk yelling "fill, damnit, fill!" will benefit from this book. Quite simply the best guide to level ll interpretation and order routing I've ever seen. It provides some terrific details on ALL of the ECN's, SelectNet, InstiNet, (etc) and the micro-mechanics of dealing with them. Far from the simple "routing grids" provided by DAB's, this book shows which routes work BEST, and when. It is filled with many excellent insights about the workings of the quotes montage (which is no longer a mystery to me).