If something was drilled into by "everyone", then "everyone" already knows that something. If the firm trader that makes a market in that stock at Giganto Securities, who has 430 million dollars to buy and sell the stock you are trading, and he has to make money, and he knows that "everyone" (every day trader) shorts on a big offer, then he can maybe use that on occasion to take your money.
Don't get me wrong, volume is important. Sometimes it is very important. All I was saying was don't use a filter that "everybody" knows as a primary filter. Big volume differences on bid and ask can be important SOMETIMES.
But if I have the big bucks, and I want the sheep to short the stock, I can put out a big offer. I don't necessarily have to sell all those shares. I can take that stock down a little, buy it cheap, and badda bing badda bang, your short all of a sudden is going the wrong way, and you buy it back at a loss.
From me.
|
