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besides a trading platform, what are the fav tools of the day trader?
Here's another L2 article - more interesting reading!
http://www.hotstockmarket.com/forums/showthread.php?t=14938
There have been many theories on those odd number trades in the past. I haven't a clue what they really mean.
Sometimes a late day print will make it look like it closed at a totally different price - could have been a t or x trade and then they adjust the numbers at the open the following day.
I know the MMs like to send signals to eachother with order amounts. I saw a trade today for 777 shares on a sub penny stock. Is there any significance to this? I have to believe there is because the trade was only worth 23 cents.
Could anyone explain here how a stock closes at .005, but in my portfolio is closes at .029, than the next it opens at .005?? I feel like I'm in the twilight zone...
Yes and no. Since the example you gave me is a triple zero stock that is trading at about as low as it could trade at - the lowest you can see it trade at would be no bid and an ask of .0001 (which would mean you probably couldn't even sell it). Generally, good bid support and a smaller ask does mean it is more likely to uptick on buys. I don't know anything about that stock you showed me. If there is some type of promo going on and a lot of people are playing it then, yes, it could move up with nice bid support. But, generally, on a triple zero stock trading that low, it takes loads and loads of buying to uptick because those type of plays are so dilutive. If it is pumped enough there are chances of a stock with a huge os to uptick, but I would be very careful and if you are up to secure your profits early before it crashes back down again.
thank, so i take it as the bid support for this particular stock is quite good and likely hood of going up based on the L2. I know L2 just a part of it and I must do other DD as well.
You can tell by looking at how many are lining up at one price on the bid and the other price on the ask. The prices at the top are the current bid and ask. In your example it would be .0002 x .0003 9x5. There are mm's at .0001 in your example because it is the next bid price. So if there were a major sell off and that nine wall started to fall, the bid would eventually become the next price and in this case it would be .0001. For the price to go up you want to see good bid support which would mean more mm's at the bid than at the ask. The 50 represents the size - mm's usually show 5000 share on pennies - that example you gave is a very weird looking level II with ARCA having a larger offer than the other mms. Here are a few sites you can look into:
http://www.investopedia.com/articles/trading/06/Level2Quotes.asp
http://www.hotstockmarket.com/forums/showthread.php?t=35169
Can anyone teach me to read L2 please? example like below, how do I tell how many MM at bid and how many at ask? I take it as 9 at bid and 5 at ask but why is there some at 0.0001 and why is size 50? thank you
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51787111
I am not familiar with the MCClellan indicator so I have no idea who offers it. Try their web site: http://www.mcoscillator.com/
I am looking for a Ratio-adjusted summation index (Rasi) indicator developed by Tom McClellan on a daily stock index chart. None of the chart websites that I frequent offer this indicator, perhaps someone is aware of one that does.
I really think you and newview are talking about two different things. He's talking about time and sales of prints. You are asking about the colors that represent the mm levels. Each software platform has their own colors. I use two different level II platforms and I could watch one stock and these two level II platforms will show different colors because that is how they are set up. If you look here, alphatrade says:
The offers are grouped into different colors, by price. The colors mean nothing on their own; they merely serve to separate the price levels, for ease of viewing.
http://www.alphatrade.com/techSupport/Level2Help.html
Ahh ok thanks. One things that's weird is sometimes I see MM's offering RED at BIDS as well as BLUE as well as on the ASK side. Does this mean the RED is a BID or ASK order by traders rather than MM liquidity?
The name was an old school Japanese jiu-jitsu fighter a long time ago.
Didn't he ask about Level II and not time and sales? I think he wanted to know what each tier of Market Depth meant.
red - trade placed at bid (sell)
green - trade placed at ask (buy)
blue - trade not placed at bid or ask
yellow - new high or low for the day
quite a name you have! whats it mean?
The colors are there so that you can differentiate between the prices tiers. With Etrade it goes as follows:
Green: Tier 1
Red: Tier2
Yellow: Tier 3
Blue: Tier 4
Light Green: Tier 5
I'm sure this is standard and each platform uses their own colors.
L2 question! What do all the the green, red, and blue color trades mean in the level 2?
Personally, I think that tool is useless. They just assume anything at the bid is a sell and anything at the ask is a buy.
Thanks. I will try them out.
Wait, you have a certificate of shares that are no longer restricted and your broker won't accept them? Is it just this particular issue? I would find a broker who will accept them. That's a lot of money and you need to get them into an account before they start trading south which can very well happen when restricted shares become unrestricted. Everyone starts selling them. Try choicetrade - I use them and they have accepted shares that Etrade wouldn't let me trade. They have no restrictions.
I have just received a stock certifiate for 200,000 shares of a great penny stock that's trading at .20 a share. I had a restricted placement and the now the restriction to trade has been removed.
My broker claims that due to new stricter stock trading regulations, they will not accept the shares for deposit into my account. I'm in California. Any ideas here?
What's this flavor of the month? I'm starvin!
None, imo! lol There are sooooooooo many of them. And then there are some flavors of the month. What I mean is, for example one might be considered to have the best picks at one point and will be a favorite until they make a few bad picks, and they will eventually. I just hope you are not trading based on penny stocks promos alone. It is a good idea, though, to know if a stock is heavily promoted or not. pennystockchaser seems to be a favorite lately - u can find them on Twitter
Hello I am new to IH and I have a question in regards to subscribing to a penny stock alert news letter. My question is wich one is the best?
Any oppinions would be appreciated.
Tanks in advance
You know, when I was younger I always thought Jose Cuervo was tequila. I hated tequila and margaritas up to the day I drank Patron than Don Julio. Now I keep it stocked even though I dont drink anymore lol. (keep it around for guests and the wife) If you ever make it up in the pacific northwest stop by and I'll fix one for ya.
My Reasoning...Stockpromoters.com gives out some pretty good information on who is promoting what and what the compensation for such a promotion entails...IE HOTOTC was compensated 500,000 unrestricted shares for pumping ABCD.OB for one week,.,,,This got me thinking, is it possible to pinpoint the day HOTOTC was compensated based on the number of shares the individual was compensated and the trading volume for that day? Provided of course the stock is thinly traded to begin with.
If a 500K block of shares all of a sudden pops up on a thinly traded day and two weeks later it turns out this guy was compensated 500K for a one week pump it makes me wonder if their is a correlation there...
Makes me wonder if one can focus in on stocks with abnormal jumps in volume (provided of course their is no indicator suggesting the stock should jump) a few weeks before a pump occurs...This is why I was asking....
I realize a lot of these guys get paid in cash but a lot of them do get compensated in shares...I suppose they just water down the float and my idea doesn't hold since nothing is purchased and their compensation is not reflected in the daily volume of a security.
Beware when they get issued shares and make sure you take profits out asap if you play it. JMO
No they are sold when they are sold, but when a company issues shares it dilutes its' outstanding making it even harder for the pps to go up.
Great!! That was a good response...I appreciate it..
Thanks for the reply...Now technically if a company is giving away shares to someone, say as compensation for promotion, does this qualify as being sold? I doubt the company is buying shares from the the float to give to a promoter so I wonder if these shares will show up as trading volume...
haha, I was just poking fun with ya, now lets make some cash.
Actually it was margaritas.
Any shares sold would show up in the trading volume.
I think Cintrix is still drinking her wine coolers this holiday season, but she ought to reply when she's recouped a bit.
Most promoters will get paid cash not shares. Sometimes they will buy up shares accumulating with their investors they have alerted. You have to be careful because eventually they will sell.
Same thing with a promoter if they get issued stock. I highly doubt you will see a 1 million share transaction, but if they are issued shares it will show up in the daily trading when they sell. However it will depend on the amount they sell at any given time. They won't neccesarilly sell all 1 million per say at once. Just my opinion, as I'm not a stock promoter and dont pretend to know exactly how it works. Hope that helps. Like I said Cintrix could probably clarify it better than me. GLTY.
Question about Promoter Compensation...If a promoter is compensated say 1 million free trading shares, would this show up in the daily trading volume for the stock on the day it was issued?
I use Pro and Market Trader but you need to be an Etrade customer and make over 30 trades per quarter to qualify. Since I am not totally fond of Etrade in general I make a small portion of my trades through them in order to qualify for the tools and the rest I use another broker to trade with.
Can anyone suggest a trading software program that they highly recommend?
Very helpful...TY
Retail is individual traders such as you and I, not institutional such as funds.
MM = Market Maker
You may want to read this:
http://www.sec.gov/investor/pubs/tradexec.htm
You said..."There is a sell with the buy, but it isn't always retail- like I buy some that you sold. Like Theo said it could be mm with a bunch of inventory selling to a retail customer".
Forgive me - I'm learning - 'Isn't always retail' - what do you mean?
"...it could be mm with a bunch of inventory selling to a retail customer..." What is mm, and what do you mean by a bunch of inventory?
I would greatly appreciate it if you could take the time to explain this for me...TY!
There is a sell with the buy, but it isn't always retail- like I buy some that you sold. Like Theo said it could be mm with a bunch of inventory selling to a retail customer.
Forgive my ignorance - but in order to build inventory, you must buy it, right? In order to buy it someone has to sell it to you, right? So where is the link I'm missing? How can there be a buy wiothout a sell?
Not always. For example, MM might be building inventory to sell later. Lots of times tho you might only see one side of the trade cross especially if the stock has a lot of volume i.e., crossing too fast to see the individual trades.
Understand. But my confusion is, if its a buy, isn't it also a sell?
It is more bullish for the stock to trade at the ask. That is why so many people refer to bidwhacking being wrong because they think it kills a run. More often when a trade happens at the ask it is a buy.
I don't use Scott Trade but I looked it up for you - here is what the colors mean:
What do the colors mean on Time & Sales?
• • • Green = trade occurred on the Ask.
• • • Red = trade occurred on the Bid.
• • • Cyan = trade did not occur on the Bid or Ask.
• • • Yellow = trade broke either high or low for the day.
When I hear people say there is a lot of selling going on, I don't understand it. For every sell there is a buy, right? For every buy there is a sell right?
So if the trade happens at the ask, does this tell you something? If it happens at the bid, does this tell you something? (Other than the obvious - that the stock is going up or down....)
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