Small Cap Nickel Spreads
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
Stock traders may want to beware of small cap nickel spreads. This is a proposed change in trading penny stocks. Penny stocks have traded in one cent increments for a dozen years ever since the markets went to a decimal system instead of fractions for trading stocks. The proposal being floated comes from the major markets and from Citi Group and suggests that stocks with market capitalizations of less than three quarters of a million be traded in five or even ten cent increments. The argument is that a change to small cap nickel spreads would add liquidity to that section of the market as it would attract market makers in search of higher profits. Such a change could also be the death knell for those who currently make their money scalping in day trading on penny stocks. Basically a move to small cap nickel spreads would increase commissions and attract market makers who would in turn entice the average trader into this market sector. Perhaps we can rework the old Roman quote to say, let the trader beware.
2. Stock traders may want to beware of small cap
nickel spreads.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
3. This is a proposed change in trading penny stocks.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
4. Penny stocks have traded in one cent increments for
a dozen years ever since the markets went to a
decimal system instead of fractions for trading
stocks.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
5. The proposal being floated comes from the major
markets and from Citi Group and suggests that
stocks with market capitalizations of less than three
quarters of a million be traded in five or even ten
cent increments.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
6. The argument is that a change to small cap nickel
spreads would add liquidity to that section of the
market as it would attract market makers in search of
higher profits.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
7. Such a change could also be the death knell for
those who currently make their money scalping in
day trading on penny stocks.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
8. Basically a move to small cap nickel spreads would
increase commissions and attract market makers
who would in turn entice the average trader into this
market sector.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
9. Perhaps we can rework the old Roman quote to say,
let the trader beware.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
10. Is Volume Good, and
for Whom?
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
11. There is an old saying that a man visited a yacht
club and gazed at all of the big and fine yachts.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
12. Who owns these yachts, he asked.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
13. Why, stock brokers own these fine yachts, was the
reply.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
14. Then where are the investors’ yachts, the man
asked.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
15. There was no reply.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
16. This proposal seems to us to be an attempt to inject
money into the pockets of stock brokers and
investment houses and not an attempt to make the
market more liquid for the benefit of the average
investor or trader.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
17. It could drive scalpers out of this section of the
market as it increases the risk of a bad computerized
trade.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
19. The argument being floated is that somehow small
companies will flourish and have more money to
reinvest and grow if small cap nickel spreads
become the order of the day.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
20. Day trading strategies will need to be readjusted.
And some will simply disappear.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
21. Along the way market makers will work to attract new
investors and traders and reap their rewards.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
22. To the extent that a given stock trades more
frequently that does not profit a company.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
23. To the extent that increased attention to a promising
stock drives its price up that could benefit a growing
company and help it grow.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
24. One rational suggestion that has been floated
regarding small cap nickel spreads is that there
should be a trial period with a reasonable number of
small cap stocks to see how this change would world
in the real world.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
25. That is perhaps a reasonable suggestion.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
27. Well executed technical analysis of stocks is the
keystone of successful stock trading.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
28. Smart traders only trade when trading signals are
highly in their favor.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
29. To the extent that a penny spread system
encourages poorly thought out trades it may be time
to go to small cap nickel spreads.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
30. On the other hand penny spreads provide liquidity
that nickel spreads will not.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
31. If market makers really wanted to promote liquidity
they would enter this section of the market and
promote it, even with penny spreads.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
32. It seems to us that perhaps too many market makers
are looking to buy bigger yachts.
http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads