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Registered User
Joined: 3/7/2006
Posts: 244
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I'm pretty much done trading after hours. The bid/ask spreads on heavily traded stocks can easily exceed $1.5
Take CAM right now in after hours. Bid is 45.34 ask is 46.80 In this case the bid is low. More often times the ask is way too friggin high.
I think the exchange needs to look into these crooks.
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Registered User
Joined: 3/7/2006
Posts: 244
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BBG is a better example It went out of the regular session at 30.84
Current bid/ask is 30.23 / 31.75
There's just no reason for this
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Registered User
Joined: 12/31/2004
Posts: 382
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I try too get some stocks that cammer said was hot.What a joke .I whent as fast i could with the order but it was up 2 bucks .I did that about 5 times in never could get in before the rush.I never try anymore
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Registered User
Joined: 10/8/2004
Posts: 4
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Following Creamer forget the next day it will run up then come down. Start tracking it for a few days you should find a good buy on the rebound good for a short term pop after that watch out. The most I get from Creamer is a headache from the screaming horns, and junk toys that go with it. Good Luck <:o)
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Notice at the bottom of the screen.
Stocks will start going up as soon as he mentions them.
That is why he says wait for weakness. Dont buy as
soon as I say.
Thanks
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Inspector the after market trading is as pure as it can be. There is no market maker, and orders are system matched. Only limit orders. I haven't traded after or pre market for a while. It is boring, there is no dinamics. But I have to say that it cannot be unfair. If you are buying set your price at limit at whatever it is you want ot bid. If your order can be matched it will take, if not it won't. There is not market maker manipulation.
About Crambocrap, you already know what I think.
good luck
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Registered User
Joined: 3/7/2006
Posts: 244
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BigBlock,
I'm aware there is no person acting as a market maker as it's all electronic so there isn't a true market maker. There is still an entity of some kind that acts as a trader whether it is a person or a computer. They don't work for free so they have to live off of a spread of some kind.
I just see no justificication for excessive bid/ask spreads such as these. Just imagine if the regular market allowed such extreme spreads.
Bottom line is electronic trading is supposed to lower costs and spreads, not act as an excuse for extreme spreads just because it's after hours.
About Cramer, I was literally in the middle of placing an order to buy SAFM last week when I looked up and saw he was in the middle of pumping it up on his show. It was his lead stock. I had to put my buy on hold, then the news came out about the bird flue killing something like 7 or 9 people later that night.
The stock took a huge hit as a result.
So - Cramer actually saved me a lot of money completely by accident.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Quote:"I just see no justificication for excessive bid/ask spreads such as these. Just imagine if the regular market allowed such extreme spreads.
Bottom line is electronic trading is supposed to lower costs and spreads, not act as an excuse for extreme spreads just because it's after hours."
Inspector62
You must realize the basic law of business is supply and demand.
During the trading day the bid/ask spreads in things like QQQQ and
SPY are extremely small. It is not because they want to be "nice".
It is because of the huge volume in these issues.
The solution to your problem will come when after hours trading is more accepted and the trading day becomes 24 hours.
Anyone who's traded a number of years knows that commissions
and information has only gotten better for the little guy. Mainly
through the internet and competition.
As volume grows or other vehicles are offered after hours trading
will also "correct" itself.
As for Cramer I can only say that I continue to be amazed and
amused at the opinions of him on these posts.
He runs the gamut from "stock picking genius" to "clown" to
"Satan in a shirt and tie"
Thanks
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Registered User
Joined: 12/8/2004
Posts: 213
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I say:
Give em a break:
Hell they are working overtime during afterhours and the volume is less per minute than during normal hours so they are entitled to a bigger spread on after hours trades.
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Guys I will say this again. THERE IS NO MARKET MAKER OR INSTITUTION OR ELSE IN AFTER HOURS. ALL ORDERS ARE SYSTEM MATCHED. THERE IS ONLY COMPUTERS DOING THE BUYING AND SELLING.
THE BIG SPREAD ARE MADE BY THE BUYERS AND SELLERS THEMSELVES.
THERE IS NO SYSTEM MANIPULATION JUST SIMPLE SUPPLY AND DEMAND.
I am not sure what else you think there is. You can only enter limit orders in after hours, and they are only system matched. It is as simple as that.
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Registered User
Joined: 12/8/2004
Posts: 1,301
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Bigblock is absolutely correct. There is no one at the helm of after hours trading. Buyers and sellers are matched by their bid and offer. You cannot place a market order to buy or sell so there is no one but buyers and sellers controlling the spread. When you see large spreads in after hours it is because buyers and sellers cannot agree on pricing. This is why many stocks have small volume in after hours trading. There isn't anyone making a market.
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Registered User
Joined: 3/12/2005
Posts: 17
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"Buyers and sellers are matched by their bid and offer. You cannot place a market order to buy or sell so there is no one but buyers and sellers controlling the spread."
Just so. The problem is lack of volume. You can see the same kinds of spreads during the day on thinly traded stocks.
I don't trade after hours nor on stocks that have less than a 150k average volume because of the large spreads.
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