I never buy a stock after it makes a new high. I always get good prices right in front of the buyer and that is my stop. The only stock I buy at the highs is 100 shares when and if the stock is bidding the high of the day. That's not really part of my position though, it's just there to keep upticking the stock.
Sorry Don, can't agree with you here. Open book is total crap. Those orders are mostly daytraders who will pull the bids and offers the second the size bid they are leaning on gets pulled. No large player is going to show his hand in the open book. That is why there is a specialist. He is there to help him work the order. Not the show the whole world that there is a large buyer out there. Come on, think about it. Where is the logic here. Why would lay your hand on the table for the whole world to see. You wouldn't. No more then you would lay your cards down in poker and show everyone at the table your hand. I could care less about all the daytrader's bids in the open book. I care about one thing, the institutional buyer in the stock who continues to step up with 100 shares and take out every size offer he sees.
if it's a NYSE stock I don't are but if it's a Nasadaq level ll, w/ a rainbow on the BID, deep on the offer, trending down, and the right time of day...i'm short....and i'll see you lower.
Mav could you please quit crusading and telling the whole world that all my bids/offers in the NYOB are fake.... Now I won't be able to fool anyone... I think the NYOB can be useful but can't be trusted.... There are a lot of jokers like me out there... mnx
I understand your reasoning and for the most part I agree but you can still find many players sending electronic orders to NYSE, therefore hitting the openbook with enough size to move the market or at least hold it for some time (when I say players, that includes short sellers, if you see what I mean). Now, how much the openbook is gonna help is in large part relative to the stocks you're trading and the specific strategy you're running. But in general I agree that big players will do everything they can to hide their game (when they have the time) and that relying on the openbook alone will drain your account.