Forum Topics Things I don't know that others might...
UncleWally
3 years ago

Noddy, I'm with Nabtrade.

Whenever there is a Red Dot beside one of my holdings it always opens an announcement of some kind.

I would call Nabtrade and ask them whats going on?

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Bear77
3 years ago

A Red Dot beside a holding in your NABTrade portfolio is simply an alert, and it does alert you to price sensitive announcements, as well as some other things such as 52-week high or lows being reached during that trading day.  For instance, ZNO and TNE both had red dots today.  ZNO because of their Quarterly Activities/Appendix 4C Cash Flow Report (which resulted in a nice +26.58% rise, admittedly off a very low base) and TNE because they reached a 52 week high with a trade of 12.06 at 10:26am AEDT today (14-Oct-2021).  If you click on the actual red dot, it will tell you the reason for its existence.  The red dot does NOT necessarily indicate there is a price sensitive announcement for that company, even though a price sensitive announcement is ONE of the reasons why there might be a red dot there, it's just to alert you that there is something of note to check out, and checking it out is as simple as clicking on the red dot itself.

Additional:  TNE actually got up to $12.485 at one point (3:10:06pm today) before closing at $12.30, so I'm not sure of where NABTrade got that $12.06 high from, as it was actually $12.485.  It's important to remember that those red dots are generated by the NABTrade software, not by the companies themselves and the NABTrade software automatically creates an alert (red dot) for every price-sensitive announcement plus a few other things, such as new year-highs or year-lows being made intraday.  However, as demonstrated by the TNE 12-month high alert (@ $12.06), they don't always get the details right.

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Noddy74
3 years ago

Ah-huh! Thanks Bear. I am that little bit smarter than I was this morning. Although I'm still getting my head around the breadcrumbs.  Are the trading systems trying to convince other - dumber - algorithms that there's a technical trade opportunity (that then becomes self fulfilling). Or are they trying to convince punters - or both?  Actually maybe I don't want to know as it's hurting my head. 
 

There are so many more things that I don't know that others might. I could fill a book. 
 

why do you so often see a buy and sell position before market open that either offset or nearly offset but are significantly different to prior close?

why do people rate Brainchip?

why does does beetroot go through your digestive system so quickly?

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Noddy74
3 years ago

This could be a pretty long list but I'll start with two:

I don't know why Nabtrade (and maybe other platforms) give me so many false positive price sensitive announcement notifications.  Every day there seems to be at least one little red dot sitting next to one of my holdings but when I click through there is no announcement - price sensitive or otherwise.  Why is it so?

I don't know why people/institutions leave a bread trail of immaterial buy/sell orders for a stock.  I gather it's institutions and I think they do it at the company's (stock's) behest.  But I don't know why and I don't know if they get paid to do it.  Are they trying to smooth price movements or simulate more volume in the market than there actually is?  So many unanswered questions.

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Shapeshifter
3 years ago

Yes Noddy, your second question, I want that answered as well.

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Bear77
3 years ago

I was under the impression that the breadcrumbs were created by trading software to lead the price in the desired direction, and mostly that would be the trading software used by some of the larger insto's who day-trade all the time to pick up a few cents here and there which can add up when you end up trading larger volumes.  The breadcrumbs don't contribute much to that volume but once the price reaches a certain level they can offload a trading position with much higher volumes.  The reason I assumed it to be larger insto's is because they have trading deals which allow them to trade at next to nothing per trade, whereas for the rest of us the brokerage on all of those small trades leading to the larger trades would kill us.  Those trades for a few cents or a few dollars worth of shares are usually made by those insto's who get almost open slather on trades, meaning they pay a fee per day (or week or month or year) rather than a fee per trade, or something along those lines.

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nerdag
3 years ago

Yep @bear77, spot on. The algorithm traders are the ones responsible for the bread crumbs of sub $200 trades, usually in odd quantities or values.

Human/retail traders will tend to buy in round numbers or round parcel values (i.e $1k lots, or neat parcels of hundreds or thousands of shares).

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