I don't look at ladder but do know anyone can see market depth.
The market depth size on either side does not include stops correct?
The market depth size on either side does not include stops correct?
DOM
- Thread starter bloomberg1
- Start date
Robert Morse
Sponsor
Correct. You can't see other's STOP orders.
what I thought because it would be a buy order essentially let's say if you were short and you had to stop above the market
Robert Morse
Sponsor
A STOP or STOP limit is not an active order until triggered.
There where does the idea of "running the stops" comes from? I always thought that a suspicious idea.
I thought so but just looking at that DOM first couple times I just wanted to be sure
lol my pro boys know where the stops are.... too obvious, everybody is doing the same thing, 1 tick below support blah blah, bull shit technical analysis 101 book has washed everyone's brain lol.
Robert Morse
Sponsor
Anticipating where traders would place STOP orders and seeing them and knowing the number of STOP orders and their size at each level are 2 different sets of information. One is fact and one is , well, not.
My understanding is that in the "old days", the stops came in over the phone to the trading floor. So everyone knew where the stops were - I think they were called "stacks" as they were literally stacks of paper orders
Nowadays, as @dozu888 said, it's pretty obvious where stops are and a single trade of 100 shares (or sometimes even dropped bid) will start the domino effect.
also, in continuation of what we discussed yesterday.... running the stops doesn't mean the stops need to be concentrated in certain areas with 'known levels and sizes'..
if my pro boys sense that there are a lot of short term speculators on the rally train, such as indicated by the sentiment indicators I mentioned, they can simply just knock it down a few %, and knowing how most retail accounts trade, that will certainly run a lot of stops.... and knock down by how many % has the maximum stop-run effect while allowing minimum flats/shorts to buy in? refer to the discussion yesterday lol.