Replies to post #31141 on CMG Holdings Group Inc (CMGO)

[StockScout1]

Dee, I open up the Trades Page in Data Tools up top. This tells me when a trade is made whether it is a buy/sell or ?, but I look at the L2 at the same time and compare. With windows 7 you can split-screen and watch both simultaneously. Bid usually is a sell but not always or visa versa on the ASK. Kinda depends on how fast the price is changing.
http://ih.advfn.com/p.php?pid=trades&symbol=CMGO

The trick here and what is confusing is that when a trade on a short sale is made. It is made at the same price. For example: the short is covered or sold at .006 but since the same person then took ownership of the short sale it becomes a buy. But the market can only reflect one report per person at a time not two. Their is a definition for this somewhere, I think on the reporting site.
That report is what we see on the Trades an L2. The only one that actually knows that it was two distinct trades is the MM.

We are now in a buying mode trying to move the ASK upwards but some folks are still trying to get shares as cheap as they can. Can't blame them, so they sit on the bid. Sometimes you can't buy on the bid because their are no shares there, or no one is willing to sell to you on the bid. So you move over to the ASK.

If you know that some shares are short at say .006 and the ASK is .008. Which do you try to fill for yourself? Common sense says you will go for the .006 but since you refuse to buy the short which is borrowed shares anyways, you go for the .008's and leave the 6's behind, which in turn starts a short squeeze which makes the owner of those shorts take ownership himself. If that price is above his starting price, he takes a loss. for example if bought a short at .008 and you thought it was going to .006, instead it went to .009 you just took a .001 loss. Think of a buy and sell in reverse. Only thing is you never owned the position, you just borrowed the position. Now you must own it, you got a margin call.
A round about way of explaining it.

This is were options, futures, puts and calls came into being. Don't know if you trade those markets. That is a whole other ballgame and even more complicated.