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Strategies & Market Trends : Lizard King's Trading Swamp -- Ignore unavailable to you. Want to Upgrade?

To: Sparky Beardslee who wrote (2926)	11/22/1997 5:26:00 PM
From: Harry Ehrlich	Respond to of 7396

Question on wide spreads: I recently saw a post where two day traders were exchanging stock picks that typically traded with a wide spread. I got the impression that they felt this was a favorable condition and that they like to trade stocks with high spreads. I did not understand this. From my point of view, a wide spread means an immediate loss. If a stock has a 3/4 point spread, that's a lot to overcome before making a profit. And if the stock moves against you slightly, you're already out a full point. Can someone shed some light on this for me. Thanks. Harry