The original 16 million share bid from ATDF (now 1
Post# of 96896
Posted On: 03/30/2016 11:55:31 AM
Re: goodbuddy4863 #55997
The original 16 million share bid from ATDF (now 17 million) was/is probably a fake big order.
"Fake Big Orders – One of the best ways to mess with the psychology of the market is to show big orders on a level 2 screen. Big orders on the bid make it seem like there is a large demand for the stock, while big orders on the ask make it seem like there is a lot of supply. These levels can act as mental support and resistance levels for traders using level 2 screens. Market makers know this and can place big orders to move the stock in a certain direction. For example, if I buy 100,000 shares of a stock at .03, and it runs to .04 where there is a market maker showing 5 million shares for sale, I (along with other traders) may sell the stock. The large order may not even get filled at all, however, its presence alone has an effect."
The above paragraph was excerpted from this page:
http://upperdivisioninvesting.com/level-2-tip...et-makers/
"Fake Big Orders – One of the best ways to mess with the psychology of the market is to show big orders on a level 2 screen. Big orders on the bid make it seem like there is a large demand for the stock, while big orders on the ask make it seem like there is a lot of supply. These levels can act as mental support and resistance levels for traders using level 2 screens. Market makers know this and can place big orders to move the stock in a certain direction. For example, if I buy 100,000 shares of a stock at .03, and it runs to .04 where there is a market maker showing 5 million shares for sale, I (along with other traders) may sell the stock. The large order may not even get filled at all, however, its presence alone has an effect."
The above paragraph was excerpted from this page:
http://upperdivisioninvesting.com/level-2-tip...et-makers/
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