To effectively trade stocks like CME you need to think in percentages rather than pure points. On a $30 stock, your above trade would be the equivalent of going long at 30.75 and getting stopped out at 30.66. Not so outrageous now right?
I tend to agree but don't see how it doesn't hurt them in the process. If I'm an institutional client and see how they get some of these fills and the prices they are getting, I'd be furious and take my orders elsewhere.
Its usually uglier with less liquidity. Those stocks DOB is manipulated easier. The suckers are left holding the bag. The guy with the deepest pockets wins.
I also have been involved in trading since the 90's. I would agree with you especially this month the market makers are having fun. It is my understanding that the senior traders etc are gone for the summer and the junior traders are practicing the trading. I have several friends who trade for banks and this is what I am told. I find this type of market hard to have the shorts covered. Lots of flow through trades resulting in part of no fills with the blame being passed off to the ecn's etc. The last few months the market has decided to discount any and all news in my oppinion to go long. Shorts will have their turn, soon. The moves on earnings has been I believe well over exaggerated but with these moves comes the op'ts for longs. So they say. Trading has become extremely more dangerous for the day or short term position trader. Market Makers do what they want. I am starting to believe all the tech, analysis etc is bull. In stocks like the on the Nasdaq you can have any time intervention ie merger, law suits, resignations that effect your daily position and thought for the trade. This type of daily playing with you as a trader is much harder to accomplish with currency trading. Trading forex at the same time can also assist in a Nasdaq move ie as I receive news (accurate and up to date, by the minute) versus other methods that traders use. w
I have seen this activity for years during low volume months. And usually low volume stocks. I just took them all off of my radar. It's safer.
Am not sure I would agree. The market makers will decide. If you look at a lot of the stocks on Nasdaq recently you will notice that stocks that usually trade over 1m trade for the day are only trading several hundred thousand shares by 11am and can move the market 50 - 1.00. Once the UK market is closed the day traders are taken out if they do not leave voluntarily by the move designated for the day. Computes do their math and execute. God help us if we are on the wrong side. I have attempted on many an occassion to trade with accumulating 30/50k shares within pennies of my original price and have not been able to move the market 5cents.? Unfortunately, as stated banks have senior and junior traders. In my oppinon they are market markers. One of my associates trades for a UK bank and his account is 1B. He never uses stop losses, they are for us, the little guy and in his statement he eats us. We are his food. He has his goal / target and then proceeds to complete. I know it sound like I am contradicting myself. I am not. It is not the most money in my oppinion but the move that is already put in play. thus a fewk shares moving the market inside the big move. w
I'm talking about the illiquid ones. I just did a quick glance of my filter list. Random stocks: PCIS, MGEE, PSBH, TRIS, FFHS are all on it. I maybe have 200 on there that I won't touch.