Textbook Trading – Notes and Review of Chapter 9 – Brokers by @investorslive

Table of contents:

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This was a quick but useful chapter. I don’t have a ton to relay because its all in the presentation and my notes below. I’ll go over what Nate goes over, but you really need to see the chapter to get any real good use out of it.

While this chapter had limited value for me I still think its GREAT for beginning traders or traders new to pennystocks. I knew basically everything in this chapter just because I’ve been around pennystocks and the applicable brokers for years and years. But if I had to guess what the most questions I get revolve around, it seems to always be, what broker do I use, what software do I use, etc. So many new traders think some “secret” broker and super duper quant mad scientist software is out there. While this does not exist, there is indeed a HUGE advantage to having the right broker and the right software. But it is by no means a silver bullet.


Nate goes through the three best brokers at the time. While some of the clearing firms and pricing have changed, the info is still applicable today. VERY simple but VERY useful if you are new to pennystocks and have an account at Etrade or TD or some other big broker.

The chapter wraps up with a very handy tutorial on DAS trader. While I love DAS and most hardcore traders use it. It is for sure a “pro tool” and is not very user friendly to the beginner. I remember the first time I fired it up, I was like “WTF do I do now?!?”. Nate does a great job in running through all the basic getting started setup in 10 -15 minutes. This could be worth HOURS of frustration if you try and do it on your own.


Again, no trading how to in this section, but VERY useful info that you would have a hard time finding elsewhere. Nothing top secret but you could spend days googling and bugging other traders to get the same info you get in a 30 minute chapter.


-Options for trading under PDT
-Get what you pay for, usually cheap/free is worthless – Zecco – Robin Hood etc
-Flat fee OTC
-Nas – per share
-Deals/discounts for DVD buyers
     -ETC and Wedbush
     -great borrow list
     -borrows bell to bell vs IB “running out of shares”
     -Options for borrows via locate firms
     -DAS Trader and Sterling
     -DVD has discounts in this presentation – in FAQ
     -I think some of this is out to date, I think Speedtrader is even BETTER today
     -Flat rate – great for OTC’s since you might be 100’s of thousands of shares
     -Discounts on DVD
DAS Trader Demo
     -Very utilitarian, not sexy but most effective
     -HOD list
     -“Anchor” how to, link L2, Chart, T&S etc
     -How to on presetting share size and route
     -Order entry tips
     -T&S tweaks
     -Show trades and show orders on chart setup
     -How to execute an order
IU offerings
     -Video lessons

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