Hi Yuki,
There are stocks, low-cap stocks where 900 shares buy order overnight
is actually huge. I'm not saying 100% that my stock of today was
indeed the case...I do have a reason to believe it was, but it's hard
to convince others without naming the ticker.
Now, I am already working toward avoiding those because I obviously do
not want my order to cause a gap-up in the morning. Simple approach
is to buy more expensive stocks, and/or to buy stocks with higher volume.
Regards,
intermilan04
--- In amibroker@yahoogroups.com, Yuki Taga <[EMAIL PROTECTED]> wrote:
>
> Hi intermilan04,
>
> Thursday, August 31, 2006, 9:41:19 AM, you wrote:
>
> i> - When I follow my system, I get bad pricing because sometimes
> stocks
> i> gap up due to my order being placed overnight
>
> My guess is ... that you imagine you are affecting the market, but
> actually you are not. I've known some young traders that *way* *way*
> *way* over estimated the affect of their own trades on the market.
> More than one I've known actually thought they could *support* a
> stock by adding to a sinking position. They had money, enough to buy
> fairly large positions, at first. All long gone.
>
> What they could not see was that while they were seeing only bid and
> offer sizes of several hundred or several thousand shares up and down
> the tree, there was someone *working* a sell of a million shares, and
> not tipping his hand of course -- selling, disappearing, waiting for
> the ultimate rebound, selling again, disappearing again. These few
> thousand share guys imagined that they were big, but in reality they
> didn't have any idea how big big actually is.
>
> In the rare case that YOU are *actually* THE MARKET ... don't be. And
> I could not be more serious. Run away, don't walk, from those
> shallow liquidity traps. They see you coming, they are waiting for
> you, and believe me, you will be like a cow crossing a
> piranha-infested river when they get done with you: nothing but
> bones.
>
> I will say this one last time (I hope): You *cannot* trade markets,
> particularly buying them on the open at market, if your trade affects
> the price. If you continue to do or believe otherwise, prepare for
> pauperdom.
>
> Yuki
>
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