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You are looking for trouble if what I read is correct. There is an uptick
rule that states all shorts have to be made on an uptick. If the powers to
be don't want you to participate the bid becomes the offer all the way
down. You do not scalp stocks based upon anything other then direction.
The books like a small spread because it appears to offer risk control. It
doesn't. You would be surprised how fast a large bid can disappear when an
offer appears. I have seen large firms make large offers/bids in order to
be able to buy/sell on the bid/offer. I had done it myself when I was a
market maker. This is not a game. It is a business and you had better know
how the game is played before you start to play. The big kids will love to
take your money. I have made my donations over the years. Good luck, Ira
Fred wrote:
> I am now starting to SHORT STOCKS as a daytrader.
>
> If I am able to SHORT on the OFFER price....do I want stocks with LARGE
> spreads so that I can cover at a much lower price. The reason I
> ask...most books said to ONLY screen for stocks that have less than 1/4
> point wide spread between the Bid and Ask.
>
> Any feedback would be helpful.
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