@CTUCyberGroup Lesson: Fake Level III Orders
We had an usually active Monday in the CyberGroup Live Trading Room. We started the day with a watch list of eleven stocks to keep an eye on, but as the students know we were able to narrow them down into some nice winners rather quickly. $PLUG started off the day rather exciting due to some extremely high volume before and after a conference call. Some other great winners were $SCSS $BTU $p and $CYTK.
As you can see in today’s title, I want to talk a little bit about fake level III orders. In almost every single speaking I do and sometimes even new students, the topic of fake orders coming up on total view is a predominant fallacy. If you take a look at the picture of my execution system, this shows us looking at the stock $MGI in today’s Phase III course. If you look on the bid you’ll see an order at 12.70 for 45,878 shares. If I were to ask in a speaking ”how many of you think that’s a fake order”, the abundance of hands that went up would be shocking. When this topic of fake orders is brought up, I respond the same every time “Go out there and execute him.” You’d be surprised the stunned looks I receive. There are no such thing as fake orders. Just like you, a market maker can change their mind and cancel an order; they cannot place fake ones. In my class, I teach you how to confirm if the order is being executed or not, but I repeat, there are no such thing as fake orders!