How to be a profitable short-term trader in a high frequency world

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8 жыл бұрын

EP 077: How to be a profitable short-term trader in a high frequency world w/ Dennis Dick
Dennis first started out meddling with penny stocks, before soon joining a well-established prop firm known as; Bright Trading-this was in the late 90’s. To this day Dennis remains with the same firm, still as an active short-term equities trader, but also as their Market Structure Analyst.
If his voice sounds familiar, that’s probably because he’s the co-host of Benzinga’s PreMarket Prep live morning show too.
Some of the key talking points that come up over the next 60 minutes, include; scalping, surviving as a short-term trader in a high frequency world, various order types, and the opportunities that can be found trading the open (this is actually where Dennis makes 50% of his money each day-within the first five minutes).
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LINKS
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Пікірлер: 79

@madaztrader 5 жыл бұрын

Loved this one! Dennis's chat really confirms a lot of things I've suspected for awhile now from a scalping perspective. You got yourself a new fan, Dennis! :)

@asieretxebeste5080 4 жыл бұрын

I have listened to this particular episode at least 5 times. Markets are still not efficient, and I think it it's even beautiful to make a profit while giving assets the price they should have. Thank you very much Aaron!! (and Dennis for being so open)

@janpec10 7 жыл бұрын

For me the sad part of this interviews is that i get it , every single interview becouse i am profitable trader and i got to same point that pretty much every trader interwieved got, but to anyone who is unprofitable i think that informations from interviews are not useful in terms of making them profitable nor increasing the chances for that, becouse in the end you have to get there by process of failure and trying, maybe only 1% of listeners will really dig deep into their system and apply what has been said in interviews on this channel. But ofcourse like i said, fantastic info i like to have it on while i trade day to day.

@eddyvideostar 7 жыл бұрын

Janpec10: Maybe one day you will be on the show in order to elaborate for us.

@LargeBanana 3 жыл бұрын

I never seen a profitable trader have any time to post comments.

@YourGamingPill 7 жыл бұрын

this was the best interview iv'e seen on this channel, this guy clearly knows what he is talking about, get him on the show again please. what he said about the HFT algo's changed my view completely so i can now understand exactly what these algo's are doing to use my limit orders as a hedge. great stuff.

@asektraders965 7 жыл бұрын

YourGamingPill lol u amateur

@sskhussaini 9 ай бұрын

@@asektraders965lol you're probably not trading anymore.

@claytonyoung1351 6 жыл бұрын

This guy is utterly amazing. A true treasure trove of information.

@joseflores4133 Жыл бұрын

Advice and techniques still relevant today. Crazy wisdom

@dheerajnihalani2430 2 жыл бұрын

Great interview mate, just so much wisdom

@ndb0110 7 жыл бұрын

What an awesome interview. So much information that I think my brain melted the first time. Was a joy to replay.

@ChatWithTradersPodcast 7 жыл бұрын

+nancy brower - thank you, Nancy!

@eddyvideostar 7 жыл бұрын

At 37:5 minutes, a marketable limit order is just a limit order to buy at the offer/ask price.

@presidentobummer447 4 жыл бұрын

You can have fun with the HFTs on small caps. Bid up the price when you want to sell to them, or lower the price if you want to buy by simply offering under them with a hundred shares. They will pile up over each other and not even cancel when you cancel. Sometimes you can even manipulate the price by doing that.

@SwornInvictus 7 жыл бұрын

35:40 Pure gold!

@duanejackson6718 2 жыл бұрын

I think you could still do opening scalping, I get what he's saying about the high frequency traders, but I think if you set it up so you are on both ends of the trade, so you would have to buy in at least by closing, then set a limit order for what you thought you could scalp, and also set a buy order at the low end of your anticipated swing.

@sauravshukla1 6 жыл бұрын

From my personal past four month trading experience ,scalping is more profitable and easier to trade than on longer time frame.

@andreasultimate9978 4 жыл бұрын

Tried this for 2 months, I've turned from losing money to becoming profitable 👌

@MrJigga420 3 жыл бұрын

That's not scalping though. Sxalping is getting in and out on some momentum quickly. That's a swing trade.

@spiritedHeyer 6 жыл бұрын

What a great interview.

@Debjit625 6 жыл бұрын

About Anton Kreil well as per my understanding, he has an Investment banker background and his style is more as of a fund manager rather than a prop trader, yes he has handled forex desk but again its entirely with a different style they tend to make short-term positions and trade the market with macroeconomics and numbers. In short, they are in asset building and then sell the asset (fund) when it grows large enough to some other larger investment group. Obviously, not much use for retail traders in terms of trading style but definitely can learn a lot about the market from the macro perspective, things you can actually learn in macroeconomics and applied finance. Well it's just my opinion :) Thanks to Aaron for doing such a wonderful job by bringing so many experienced traders life experience to us.

@polthomaskeeley7860 5 жыл бұрын

Interesting point, and I agree that Aaron is doing a wonderful job with this platform. So much we can all take from such podcasts. We all have our different angles and ways of entering through the door, so to speak. An athlete friend of mine became a successful stocks day trader (initially came in totally clueless from a completely non-financial background), ALSO had the intention/conviction/desire/belief to expand his wealth by moving into the same Global Macro asset management paths you mentioned above a la Anton kreil / ITPM. Put simply, he used day trading as his 'foot in the door' to build his buying power WHILST having a day job (don't ask what he had to go through to make that happen!!) in order to 'cashflow' his larger portfolio investments.

@notv6357 3 жыл бұрын

I started messing around with charts and my money since 2018, luckily overall profitable from late last year to now, thinking that I will learn to trade and quit my job at some point but since listening to many of CWT and ITPM interviews/talks I decided I will only quit on either or both two conditions which are: 1. Certifies either CFA or FRM 2. Work in a professional environment I admit that this is also influenced by the fact that I am certified professional in line of service with clear benefits from being not

@JamesParus 7 жыл бұрын

the market neutral trading is a nice idea. also lot of good info. just have to listen it couple of times to understand it.

@dominic2446 5 жыл бұрын

what is market neutral trading?

@dejancorovic2063 2 жыл бұрын

This one was sooo good. Do the episode #2 with Dennis ::-)

@hasanz5259 4 жыл бұрын

Great interview, should bring this guy back. He said he makes makes a lot of his money in the first 5 mins, ie, at the open. But I wonder is it on positions he initiated previous day or on new (scalping) positions? Should've clarified that.

@sp40401 4 жыл бұрын

It was clear as glass. He puts the trades on at the open looking for inefficient opens.

@jennerb7059 3 жыл бұрын

This one answered alot of questions that I had about spreads and order prority and HFT and Ive only been trading 6 months and I know its easy to be profitable in the curent August 2020 market enviroment. I just hope I dont lose it all when the market crashes

@wolfbloodost9970 Жыл бұрын

Well? How did it go?

@AnomalousAppendages 5 жыл бұрын

Dennis is a beast.

@Brokanglass115 7 жыл бұрын

"1999 it was alot easier" because there wasnt so much algo HTF arbitrage since the tech revolution. so many retail traders find that as soon as they enter they are red until they get out then the stock keeps on its way. anyone who has put their own money on the market has noticed that the way it eats you up is a bit fishy at best. i once lost three times on on ticker as it climbed 40% in twenety minutes and i was long all three times. it taught me the true nature of the "market".

@conradsurowka6755 2 жыл бұрын

So, a marketable limit order is just a limit order on the closest bid/ask to current price? Taking into account you’re trading something with minimal spread.

@_N0_0ne 2 жыл бұрын

Thank you kindly ✍️

@rebornkingofthule7067 2 жыл бұрын

Let's talk about leftist promise of self empowerments an how you can achieve it today $PLX they can't find the shares to return them if you're not in this retail then you're destined to lose

@jaelott2603 8 жыл бұрын

If i may politely second that, I'd like to see Anton Kreil on the show. -great job on the show btw, I'm always learning something new from watching it... will like in itunes when i get back to my desktop!

@ChatWithTradersPodcast 8 жыл бұрын

+Jae Lott, I've been in touch with Anton in the past and he refused-pretty much, he doesn't want to be associated with other traders who I've had on. Second; thanks for the kind words dude! And an iTunes review would be hugely appreciated.

@ChatWithTradersPodcast 8 жыл бұрын

+bulltraderpt - not sure, didn't get that far...

@MrJigga420 3 жыл бұрын

I send alot of conditional orders, I agree 100%.

@andym5663 4 жыл бұрын

This is an amazing interview. Great information shared freely. Thank you.

@trafficante78 6 жыл бұрын

Gold!, Jerry, Gold!

@duanejackson6718 2 жыл бұрын

At about 30 minutes and he's talking Market orders and limit orders, I found the exact same thing I need to increase it in the amount of pennies in order to get an order filled. But I swing trade, so I'm in the market for a bit longer, and of course as long as it goes in the right direction losing a few pennies to get in was a small price to pay to ensure I get in. Otherwise I don't want to lose the opportunity of keeping the money locked up on an order when it doesn't get filled.

@Ibby_950 7 жыл бұрын

@fabgar79 7 жыл бұрын

This guy knows what he is talking about.-

@aycaramba9540 3 жыл бұрын

BENZINGER PREMarket Prep: EVERYDAY incl. him Dennis Dick. Actually, everyone jons this daily live podacst mostly for his wisdom ; )))))))))

@learnzz9255 5 жыл бұрын

"I hate limit orders because of hft so I do a market limit orders". After him trying to explain the difference he ends up saying it's the same as limit order😁👍

@arfa9601 3 жыл бұрын

@@Josh-Jones exactly.

@JP-wq6sb 3 жыл бұрын

Sold interview

@Dubsackjack 8 жыл бұрын

everyone likes the open, i always lose in the open so a rule of mine is to wait until 10 am...

@HemantPandey123 5 жыл бұрын

Play contra to opening...90% win...

@VicDamoneJr82 3 жыл бұрын

you need to use trend bc after 1030 is choppy

@andreasultimate9978 4 жыл бұрын

Zed monopoly pls

@ssharma1384 5 жыл бұрын

AF not too quick on the uptake re marketable limit order.

@csiri6758 8 жыл бұрын

so marketable limit order is a limit order that is actually being executed?

@danhunt5016 8 жыл бұрын

It is a very aggressive limit order with the intention to get executed immediately, yes. A market buy order will always take the best ask price in the order book, so if something changes in the milliseconds between you sending the order, and the order being executed, you could get screwed over (see front running). The 'marketable' limit buy order is priced where you already see an ask order at in the order book, and hence someone willing to take the other side of the trade, then when it arrives the matching engine immediately pairs your order. The difference is, if something changes between you sending the order, and the order arriving, like before, your trade will not be executed - hence you will not be screwed over. If you try and place an appealing limit order, say a bid that is better than everyone elses with the intention to get executed first, HF machines will replace their order 1 cent above yours, so you are never executed first, and while you wait the market could move without you.

@csiri6758 8 жыл бұрын

Thanks!

@johnheath5275 8 жыл бұрын

very simply put he is placing a limit order at the offer/ask to buy

@BillBrucePoker 4 ай бұрын

Dennis's knowledge is so far over the head of Aaron the Interviewer. The interviewer sounds lost the whole time.

@hamisintunzwenimana8083 Жыл бұрын

Good Technical 1. Market Structure / Learning Process

@anag2105 11 ай бұрын

So scalping is basically dead for the regular Joe? And all those other YT videos showing scalping strategies, they're all click-baits then?

@8520456 2 жыл бұрын

Does he mean 10 grand a month or a year?😄

@xxpjhxx 4 жыл бұрын

he makes me feel stupid :)... is this how sharp the good guys are to be to be at that level. I think I'll just accept my small place in the retail world. The guy thinks faster than I can listen lololol

@Zerosoundz 6 жыл бұрын

Anton kreil, ASAP PLEASE

@whiplash3349 8 жыл бұрын

Get Anton Kreil on the show.

@abdobe7359 7 жыл бұрын

The idea of these podcasts is great, but pretty much all those guys are not millionaires trading for all those years ( if we exclude some of them like Raoul Pal / or tom sosnoff ( investor ) ) .. the rest are just talking heads ( selling courses, subscriptions, taking commissions from brokers or making few cents from crappy pro shop trading firms .

@ChatWithTradersPodcast 7 жыл бұрын

+Abdo goldjunge, this is simply not true. Also, no one has made any claims to be a "millionaire" when they are not.

@abdobe7359 7 жыл бұрын

+Chat With Traders, I respect your view .. but what's the point of listening to those people telling u all the time how professional they are, how you should trade markets and how to live by trading and they live by selling their courses .. they tell you how professionals approach markets but they never worked in investment banks or hedge funds ... And as i said only 15 to 20% of episodes i found real professional trader.

@ChatWithTradersPodcast 7 жыл бұрын

+Abdo goldjunge, the idea that you need to work in an investment bank or hedge fund to be a "professional" trader is absurd.

@abdobe7359 7 жыл бұрын

I don't think that you gonna find them in hospitals, or factories. Investment banks and big hedge funds are the typical places where u can find those who trade at a higher level ..(you can't compare professional players of premier league with those who don't even play in 3rd league ). The problem is brokers, educators with conflict of interest, and other service providers introduce people in that bubble of false information and distraction, making them believe that the can trade like professionals using their approach and their services

@csiri6758 8 жыл бұрын

didn't understand a fucking word... :D