Tom,
Well I know for sure that my trades don't move the market.!! Of course I sometime just play around with my buy and sell orders on thinly traded stocks. If there is a large spread on a stock, I'll stick my buy limit order somewhere inbetween the bid and the ask. Nasdaq rules will require the best bid/ask to be quoted and you see my order and size become the best Bid (in the case where I am buying) or best Ask (if I am selling). I am not sure of the implications of this or if it really helps me. If I am trying to buy and someone comes in with a market sell order, they will sell at the bid for up to the size being quoted. Since I am the one setting the bid price here (with my buy order), one would suspect that I would get that stock being dumped at market. BUT, normally one buys at the Ask (not the Bid), so I am not sure how it all works. I have seen funny stuff happen to the bid/ask when I do this. Sometimes, the bid/ask both move quickly lower, I get filled, and then they go back to where they originally where before I undercut the spread. Other times, someone will immediately come in and undercut my Bid (by bidding a 1/8 or so more) so I am no longer the best Bid. Then they move the Ask up also. It's like some MM is pissed I narrowed the spread. In this case, I have to chase the stock if I want it, buy going to market and buying at the new, higher Asking price. More times than not, the bid/ask drop back to the original values after I buy.
At anyrate, this only happens on thinly traded issues. I trade CCRD a lot and the spread is usually big and the trading thin.
Do you have a re-entry strategy for VECO for your cash of you just going to stay at 1/2 position?
Mark |
