Have i been shaking out of ITL?

turbobob

adamt wrote: »

thanks for the links, when reading it does seem confusing , but i will continue to re-read to fully understand.



One last thing, what is the best way to plan my entry level back into ITL?

it has risen now to 113.75, but there has been approimately 40,000 shares sold in the last 20 minutes!

How do others plan to re-enter a share this volatile?
Is there certain times of the day which is best not to trade.
I see that 8am-9am is very volatile

It is confusing and probably not worth worrying about too much You can put LSE shares into three basic categories by the system they are traded on:

SETS - the largest companies and the most liquid shares (e.g. FTSE100), fully automated system. Market makers are not involved in setting prices. Small spreads.
SETSmm - a hybrid between SETS and SEAQ. Market makers list their bid and ask prices on the system, but other participants with direct market access can as well. Usually small spreads.
SEAQ - small cap shares, market makers have full control over the bid and ask prices. Usually large spreads.

When you get a quote from your broker they should get the best available price from the market. The screengrab below is a level 2 screen showing the order book earlier for ITL. The orders in each of the columns with codes alongside them (WINS, EVO, PMUR etc.) represent prices that each of the market makers are prepared to buy or sell the share for. You can see that they all set different prices. The ones without codes are orders that have been added by other participants.



I'm not sure, but I would guess that what you might have read about MM's marking up prices following share tips being published, or tree shakes and so on is probably going to be more relevant to shares traded on SEAQ.

Unfortunately the market has done you on this occasion! The share closed at the high of the day. I can't really offer any tips on how you would get back into it. I tend to use limit orders to buy at the price I choose (obviously there is no guarantee a limit order will be filled, and this is the downside if the share price "runs away"). However it doesn't need you to look at the share price all day which is a plus.

adamt

Thank you Turbobon and jimmyss1 for sharing your knowledge.

Turbobob thank you for showing level 2 , it will take me a few hours to get my head around, but its all good learning .

I think tomorrow morning i will keep and eye on the early SP and buy in if the price falls a bit.

But i still stand by my decision that ITL is a good buy and hold

Adam