It appears you have a mindset not unlike mine...good to see there are a few other smart ones about...LOL!
There are so many factors to be considered when purchasing shares, be it for a trade, an investment, or perhaps both.
There's general market conditions to consider, such as; the market cycle; the various sector cycles; exchange rates; inflation; oil prices; gold prices; geopolitical influences; etc, etc...
Then there are company specific conditions, such as; each stock's particular cycle; liquidity; cash at hand; number of shares on issue; number and nature of options or other instruments issued; trading patterns; growth potential; management; assets; competition; etc, etc...
Then finally...very, very finally...we have the market depth which can be useful as a last minute timing indicator...and nothing more!
I'll admit though, on some occasions, market depth can indicate an opportunity for a quick trade, but only after most of the above has already been taken into account...and only in special circumstances.
In my early days, I made some huge profits using market depth as the main guide. A typical trade might start when one of my "alerts" would flag a particular stock...perhaps because it had risen 10% or so...and after a quick check of the depth, I would by a truckload!
The problem however, is that I was also getting sucked into just as many losing trades along the way...and several "insolvencies" as well.
Nothing like a 100% loss, or two, to kick you into line!
Cheers!
NDO Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
