Post edited 12:32 am – April 14, 2009 by thedefiant
Post edited 12:33 am – April 14, 2009 by thedefiant
my biggest pet peeve with trading, especially when trading triple zero POS, is bidwacking… for those of you that don't know what bidwacking is I'll give you a crash course… bidwacking is when a stock, lets say for example upticks from .0002x.0003 to .0004x.0005, it hits that .0005 wall on hundreds of millions in volume and stays there. There are a couple of reason for this. Sometimes the culprit is the company dilluting, but the usual suspect is the lowly bidwacker. The bidwacker has been holding .0001s,2s,3s and first chance he gets he dumps his shares at the bid thus creating a wall and a dominoe effect of panicky bidwackers. This practice of impatient panick selling accomplishes quick profits for the bidwacker which is good for him but ruins what could have been a great run for anybody else hoping for a more substantial gain and drives the share price down in short order as the MMs will promptly drop the bid as the bidwacking continues…
what I do, if I want to sell for a small/fast gain is set my limit sell order to the ask price of the next uptick as soon as my buy order fills… if more traders adopted this practice not only would it discourage 'bid squatting' (the practice of sitting on the bid all day hoping for cheap shares) as it would inevitably force buyers to pay the ask price, but it will also send the price higher and inevitably the ask will become the new bid and so on and so forth, insuring greater gains for all…
I have to laugh everytime one of these walls goes up and the same posters blaming the wall on dillution are probably the ones causing the wall by wacking the bid…
happy trading…
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