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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:

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To: Arthur Tang who wrote (489)1/23/1998 12:57:00 AM
From: posthumousone  Read Replies (1) of 769
 
i am new to stocks and am wonderign if
someone explain how bid ask and price relate, this is driving me crazy

stock last saleprice is $10
bid is $10 ask is 10 1/4

how was that last trade executed?

did someone ACTUALLY buy, say 1000 shares, at $10 and did someone ACTUALLy sell 1000 at $10 OR
since ASK is 10 1/4 did that person buy those 1000 shares at 10 1/4 while the seller sold a 1000 at $10????

so the MM pockets the 1/4????

VICE VERSA
stock last saleprice is $10 1/4
bid is $10 ask is 10 1/4

i assume someone bought 1000 shares at 10 1/4 but did someone get to sell them at 10 1/4?????

if the stock is 10 by 10 1/4 and i place limit at 10 1/8 and the ask doesnt go lower can i still get it filled??

is there anything that can be inferred about a stock's price movement depending on where the last sales price is compared to bid and ask??

what is going on when the last sales price is above or below the bid ask........i get this occasinally when i call for qoutes (ie price 15 bid 15 1/8 ask 15 1/8 or something like price 15 bid 14 3/4 ask 14 7/8)

i talked to one one broker who says he can look at the logs/chart? and tell if its someone is buying or selling.

i dont understand this statement......someone is always buying and there is always a seller or there is no trade so how can you tell if a transaction is bullish or not?
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