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Re: Victor Newman post# 21174

Thursday, 02/17/2011 12:19:26 PM

Thursday, February 17, 2011 12:19:26 PM

Post# of 142890
People usually refer to a trade at the ask as a "buy" and a trade at the bid as a "sell" just to look at which way it is headed, but technically, every trade has a buyer and a seller. If a trade goes through at the bid, then it is because somebody decided to go ahead and sell their shares to somebody who wants them on the bid. If a trade goes through at the ask, then it means somebody decided it was worth buying shares from somebody who is "asking" that price (selling their shares).

The more trades go through at the ask, the more the price will go up, because it means fewer people are willing to sell their shares to the bid. So the bid will likewise rise as the price goes up because the people who want shares have to bid higher in hopes of getting some (either that, or they have to buy at the ask).

Makes sense?

Also, keep in mind that there are certain MM's that most likely represent retail traders (like us). Those retail MM's are NITE, ETMM, UBSS, CSTI, and AUTO. They can also trade for their institutions, of course, but I've seen all of them represent myself at times. Some of the other MM's represent finance or larger investment institutions. So, when they come into play, they can be a little more "serious". If they are buying on the way up, that's good, because it means big money getting involved. But if they start squashing the price down and down, it can be because of financing (dilution) and that is a good signal to watch out.

Hope that helps.

I am not a promoter or professional stock trader. I'm a regular guy who enjoys stock trading to make (or lose) a few dollars. I am only responsible for my own trading foibles, not yours...do your own DD.