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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: Roman S. who wrote (265)	10/4/1997 9:28:00 AM
From: TFF	of 12617

Roman: your correct. Volume = a tight spread and liquidity, both of which are essential to the daytrader. Here's an example: You see a stock trending up.You buy the stock.It has little volume and a spread of a 1/2. You bought the stock at the ASK. The market moves up a half. Now the BID is where you bought. What do you do to get out? offer it at the ASK?.Now the marketmaker steps in front of your offer. Because the stock is not trading that much the BID falls back and your out of luck! Now the market starts trending down..do you take the loss or hold?.... greater volume = less marketmaker manipulation

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