What you said does make sense, thank you Xela! What is level 2, and is it something we can look at somehow? Also I'm curious what you do trade since you don't trade stocks. I think I understand it, but still am wondering if it's the same proportionally, or whatever the appropriate term would be. The number of shares available from Microsoft is so much higher than the mining company example that they're not in the same league, but would it be the same for computer companies and mining companies etc, that have about the same number of stocks available? And is it the same in some conditions but not in others, for example maybe between manufacturers but different between manufacturers and agricultural companies or something like that?
You can. http://www.investopedia.com/articles/trading/06/level2quotes.asp Most of my previous experience has been with trading forex - from which I eventually made what most people would call a decent living for four years after longer than that learning and trying to! - but in December of last year, after very repeated advice from institutional trader friends, I finally made the "big switch" to trading futures (I now trade mostly the e-mini Nasdaq) and am now wishing I'd done this earlier, because I find it easier and better, using more or less the same methods. Over the last 8 years, I've traded spot forex, indices, currency futures and index futures, but never individual stocks at all. You'll get better answers to your other question from a stock trader, but I think you understand the liquidity principle correctly, anyway, in so far as it relates to dealing costs and ease/difficulty of transactions. Penny shares, because of their illiquidity, tend to be fraught with complications you'd be very well advised to avoid, at least for the moment, in my opinion.
%% Yes ;usually liquid stocks can be sold or bought @ your or my pleasure. Jack Schwager's top traders books+ William O Neills books are helpful on stocks............................................ -Penny stocks should be avoided, they tend to trend violently to pennys,,,,,, up,,,,,,,, back to pennys, as IBD newspaper warned.Wisdom is profitable to direct- NOt a prediction.
What actually controls stock prices? What controls price (investing purposes)..., or what orchestrates price moving from A to B (trading purposes) Price is controlled by fundamentals Company issuing a dividend Company making product(s) / providing service(s) that are needed Company innovating Company sound / growing Company's product / service in vogue..., necessary..., popular Company's earnings (not necessarily the earning's announcements as price will go either way initially) And depending on the company - world happenings So on / so forth (several other influences) =================== As to what orchestrates price..., moving from A to B.., with respect to above A whole host of players..., and dependent on - who is.., and who is not - presently active ============ Aside: Some of the respondents to your question should have known this - makes me wonder RN