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Small Cap Nickel Spreads
 Stock traders may want to beware of small cap

nickel spreads.

http://profitabletradingtips.com/stock-trading/small-cap...
 This is a proposed change in trading penny stocks.

http://profitabletradingtips.com/stock-trading/small-cap-nickel-spre...
 Penny stocks have traded in one cent increments for

a dozen years ever since the markets went to a
decimal system inste...
 The proposal being floated comes from the major

markets and from Citi Group and suggests that
stocks with market capita...
 The argument is that a change to small cap nickel

spreads would add liquidity to that section of the
market as it would...
 Such a change could also be the death knell for

those who currently make their money scalping in
day trading on penny s...
 Basically a move to small cap nickel spreads would

increase commissions and attract market makers
who would in turn ent...
 Perhaps we can rework the old Roman quote to say,

let the trader beware.

http://profitabletradingtips.com/stock-tradin...
Is Volume Good, and

for Whom?

http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
 There is an old saying that a man visited a yacht

club and gazed at all of the big and fine yachts.

http://profitablet...
 Who owns these yachts, he asked.

http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
 Why, stock brokers own these fine yachts, was the

reply.

http://profitabletradingtips.com/stock-trading/small-cap-nick...
 Then where are the investors’ yachts, the man

asked.

http://profitabletradingtips.com/stock-trading/small-cap-nickel-s...
 There was no reply.

http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
 This proposal seems to us to be an attempt to inject

money into the pockets of stock brokers and
investment houses and ...
 It could drive scalpers out of this section of the

market as it increases the risk of a bad computerized
trade.

http:/...
Trading Volume and

Growth?

http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
 The argument being floated is that somehow small

companies will flourish and have more money to
reinvest and grow if sm...
 Day trading strategies will need to be readjusted.

And some will simply disappear.

http://profitabletradingtips.com/st...
 Along the way market makers will work to attract new

investors and traders and reap their rewards.

http://profitabletr...
 To the extent that a given stock trades more

frequently that does not profit a company.

http://profitabletradingtips.c...
 To the extent that increased attention to a promising

stock drives its price up that could benefit a growing
company an...
 One rational suggestion that has been floated

regarding small cap nickel spreads is that there
should be a trial period...
 That is perhaps a reasonable suggestion.

http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
What to Do?

http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
 Well executed technical analysis of stocks is the

keystone of successful stock trading.

http://profitabletradingtips.c...
 Smart traders only trade when trading signals are

highly in their favor.

http://profitabletradingtips.com/stock-tradin...
 To the extent that a penny spread system

encourages poorly thought out trades it may be time
to go to small cap nickel ...
 On the other hand penny spreads provide liquidity

that nickel spreads will not.

http://profitabletradingtips.com/stock...
 If market makers really wanted to promote liquidity

they would enter this section of the market and
promote it, even wi...
 It seems to us that perhaps too many market makers

are looking to buy bigger yachts.

http://profitabletradingtips.com/...
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Small Cap Nickel Spreads

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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.

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Transcript of "Small Cap Nickel Spreads"

  1. 1. Small Cap Nickel Spreads
  2. 2.  Stock traders may want to beware of small cap nickel spreads. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  3. 3.  This is a proposed change in trading penny stocks. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  4. 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. 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. 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. 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. 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. 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. 10. Is Volume Good, and for Whom? http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  11. 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. 12.  Who owns these yachts, he asked. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  13. 13.  Why, stock brokers own these fine yachts, was the reply. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  14. 14.  Then where are the investors’ yachts, the man asked. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  15. 15.  There was no reply. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  16. 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. 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
  18. 18. Trading Volume and Growth? http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  19. 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. 20.  Day trading strategies will need to be readjusted. And some will simply disappear. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  21. 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. 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. 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. 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. 25.  That is perhaps a reasonable suggestion. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  26. 26. What to Do? http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  27. 27.  Well executed technical analysis of stocks is the keystone of successful stock trading. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  28. 28.  Smart traders only trade when trading signals are highly in their favor. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  29. 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. 30.  On the other hand penny spreads provide liquidity that nickel spreads will not. http://profitabletradingtips.com/stock-trading/small-cap-nickel-spreads
  31. 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. 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
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