Forum Archive Index - June 2000

["Alan Gray" <loons@wave.co.nz>]

Hello traders....

 

There is a growing number of share traders in todays financial world....basically because we have to start looking after our future retirement fund in whatever form we choose.

 

Whatever you buy and sell in stocks, whether it's long term or day trading...you have the right to know just how many of those shares are on offer or bid without having to telephone a broker....without this info, you are trading blind and have no idea if your order will be filled at your price or worse....buying at market and paying way over the top.

 

In todays climate....every other country has grasped the importance of this tool which is essentially basic...so why does the NZSE fail to deliver?...keeping the edge? naive? and letting good money flow around the globe. Just having depth 1 level deep is sufficient to let you know if you can confidently trade your parcel at the prices quoted.........knowing the liquidity!.

 

Now market depth is not always good...it can change it's mood in minutes and turn completly on it's head...possibly causing you to trade more frequently than you would normally. But I can say with absolute conviction that since trading in Oz using my style and the tools available, my success rate for profitable trades has doubled...but this is no easy task...........market depth is only part of the equation.

 

Good trading.