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Wayne  
#1 Posted : Friday, September 9, 2005 7:12:31 AM(UTC)
Wayne

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Joined: 4/14/2005(UTC)
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Can anyone tell me if you can make money monitoring market depth? If so how? The Market depth I use shows number of buyers and sellers and the amount of share each buyer/seller wants with unlimited levels. But I can't see whether the buy/seller is an institution. The only way I think I can use this to my advantage is to buy when there is alot more buyers than sellers and once I am in profit I sell!! Obviously this only gives me a very small gain. Pls give comment on this technique or other techniques using market depth? Cheers
hayseed  
#2 Posted : Friday, September 9, 2005 3:37:50 PM(UTC)
hayseed

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hey wayne.... thats a good question... in addition to your concerns is the bid/ask size vagueness.... so in a very real sense your only seeing what they want you to see..... a market maker might be asking 40 bucks and only show 100 shares .... in reality he has 10,000 for sale at that price.... of course if he had 10,000 shown on the board, someone might step down to 39.99 .... so he covers his cards by showing only 100.... so depth can be deceptive..... the same tatic goes for the bid side.... if you have a 4 market makers doing that the true depth is hard to guage..... probably ought to say at this point, i see nothing wrong with the above.... you can use market depth to your advantage in low volume/low priced issues.... it might be the darker side of trading, but its fairly easy to move the bid/ask around to your favor...... you have to be careful in the stock you trade though for that to work...... with all that cloak and dagger going on, it seems easier for me to just use macd crosses and the like.....h
StorkBite  
#3 Posted : Friday, September 9, 2005 7:07:06 PM(UTC)
StorkBite

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Hey Wayne & Hayseed- Are ya'll using ZoomDynaQ to get this information? It will list market makers (institutions and/or key registered players). I was looking for more information on this type of trading too. See: http://forum.equis.com/viewtopic.php?t=1784he market depth info is a key piece of knowledge. Unfortunately, I'm knowledgeless at the moment. Is that a word? Anyway, it might be worth looking at what ZoomDynaQ can do if you're not already using it. My 0.02. :D
hayseed  
#4 Posted : Friday, September 9, 2005 11:53:40 PM(UTC)
hayseed

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Joined: 3/7/2005(UTC)
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hey g.... sorry, i missed your other post..... i'm using zoom dynaq and etrade's platforms like 'market trader'..... have access to a couple other sources but quotecenter has made them pretty much redundant..... on most stocks you should be able to see your trades hit the level 2 board, if your not buying/selling at market.... the only time mine aren't seen is when i'm trading high volumes like 'lu'..... and occasionally someone will step in front of me which hides mine..... its the fact that everyone can see your bid/asks that allows you to move the market around at times.....h
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