Sent: Monday, June 12, 2000 3:12 PM
Subject: Re: [sharechat] NZSE: Market
Depth
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.
See IRG research reports
