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Strategies & Market Trends : Trading For A Living

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To: Ken Adams who wrote (986)	7/20/1998 2:02:00 PM
From: tom pope	of 1729

Actually, I didn't understand some of the answers myself (except mine, of course<GG>) If I use an unlikely example, perhaps I can explain my view of size. Assume DRI. Last trade 18 (for example). 100,000 offered at 18 1/8. 1000 bid at 17. Where do you think the next trade is likely to tend to - up or down? Well, if I'm a potential buyer, I see that there's a bunch of investors looking to sell, and very few buyers. It seems to me that if I put in a bid well under the last trade but above 17, I'll be the best bid. If I'm a seller, I'll see that trying to get 18 1/8 is unlikely to be filled since there are all those shares offered ahead of me. So maybe I'll drop the ask to 18, or perhaps even lower to see if I can lure some buyer out of the woodwork. Size on the offer = supply. Size on the bid = demand.

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