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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL) -- Ignore unavailable to you. Want to Upgrade?

To: William Harvey who wrote (30613)	3/20/1998 11:23:00 AM
From: Pat Garaffa	Read Replies (1) \| Respond to of 41046

Thanks for the breakdown Bill. I wasn't sure how you were claiming each trade. Now may be a very appropriate time to ask these few questions. If anyone else can help me with these, please jump in: If the bid/ask at 10:00.00 is 4.06 X 4.12 and a trade goes off at 10:00.25 at 4.06 would you assume that this was a sell based on the current bid x ask or must you look at the bid x ask that was posted just prior to the 4.06 X 4.12 because the trade occurred only a half second later? If the bid x ask was 4.00 x 4.06 only moments before I believe the 4.06 trade, in my above example, was actually a buy and not a sell. Of course the opposite will happen when the clowns, er' sorry, I meant MMs, are moving the price downward. In my example the trade occurs half a second after the bid x ask is changed so the actual trade price must have been based on the bid x ask which was posted prior since no human could respond that quickly. Ah, but what would happen with computerized trading? When actual orders are placed in advance of a change in the bid x ask? An order executing, when it met the buyers or sellers price, half a second after the price was changed could be very realistic. So now were back to a sell instead of a buy? I believe the first method (slow human method) I stated above is how you responded earlier. Am I correctly understanding your method for breaking down the log? And if so, would the argument for computerized trading support the log? Orders are executed in exactly the order they appear and the trade is based on the current, and not the prior, bid x ask? Confused - Good! Because my head is spinning. Sorry to ask you for the detailed explanation. I'm sure you, and everyone else, have better things to do then humor me. I'm confident a few others will benefit by your explanation. Thanks again in advance! - Pat