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Author Topic: Market Maker Manipulation  (Read 14359 times)

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August 19, 2009, 11:26:47 AM
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RoagTrader

Gold Member
I don't call them scumsuckers for nothing.  If you haven't seen this before, read it carefully because this is how it works.

http://www.traders101.com/article-market-makers-1.asp

I repeat, you ALWAYS want to be on the side of the Market Makers. I am not a technical trader.  I'm a situational trader.  I look for manipulated stocks and try to buy them at the point that the scumsuckers are accumulating after they tanked it (like when I said to buy ARSC just recently).  Then ride the run. 

The majority of stocks I've owned have gone up higher than where I bought them, but my problem has always been holding on for too long for that really big score (instead of just a 100% or 200% gain). Crazy, I know.  Pigs get slaughtered, it's the truth.

Good luck to all.

August 19, 2009, 02:47:00 PM
Reply #1
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The Dude


Great info Roag.  Thanks. This explains a lot about what's happened to some of our stocks.  :o  I hope i get better at getting on 'their' side.

August 19, 2009, 03:25:49 PM
Reply #2
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Dr PennyStock

Administrator
100% true, this is why I call them MF's, instead of MM's.
Dr PennyStock

August 19, 2009, 03:39:36 PM
Reply #3
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Tomsawyer


An excellent explanation of how MMs exploit volatility.  They are essentially buying shares on credit due to demand when they lower the prices, and then selling for cash to the investors that think it is a good price.  When they lower the stock a few more points, some of the investors sell back to the MMs.  This gives them a lower average on all the stock they own.  Eventually their average reaches a low enough point that they can sell over time on a spike above the average buy in price.  Pocket the difference and find another stock...boom boom.

This really does explain why bottoms seem to drop out when a stock is being talked about on message boards.  They see this as an opportunity to lower their average due to the increased investor interest in the stocks.  (i.e.  LGTT)

Thanks Roag

August 22, 2009, 04:19:11 PM
Reply #4
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The Dude


So how can we do a better job of catching the bottoms? Is there a TA way to determine this?


August 24, 2009, 09:19:51 AM
Reply #5
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Dr PennyStock

Administrator
So how can we do a better job of catching the bottoms? Is there a TA way to determine this?



Yes, volume.
Dr PennyStock

August 24, 2009, 11:13:31 AM
Reply #6
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The Dude


So how can we do a better job of catching the bottoms? Is there a TA way to determine this?



Yes, volume.

Thanks, I know that's your number 1 indicator.

August 24, 2009, 11:53:22 AM
Reply #7
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Alwin


If there is much or little volume?

August 24, 2009, 01:30:27 PM
Reply #8
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ShyTrader


If there is much or little volume?

That's kind-a self explanatory if your question is as straight forward as it seems. Do you want to buy a stock nobody wants? (low volume), or do you want a stock that everyone wants?

Do you want to buy a stock that will be hard to get rid of (low volume), or do you want a stock that's liquid and easy to sell at the current price? (or .0001 lower)

August 24, 2009, 05:05:35 PM
Reply #9
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Dr PennyStock

Administrator
If there is much or little volume?

Volume increase near a support or resistance point is a signal of possible buy or sell point.
Dr PennyStock

August 25, 2009, 04:58:36 AM
Reply #10
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Alwin


Thanks :)  Understood!

August 26, 2009, 04:12:10 PM
Reply #11
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Chipldr999


These MF's.. Ill tell you what, if I Ever get ahold of one of these creatures....!!

August 26, 2009, 06:00:58 PM
Reply #12
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Smitty

Gold Member
Found a picture of one....

[attachment deleted by admin]
Never approach a bull from the front, a horse from the rear, or an idiot from any direction.

August 27, 2009, 10:21:43 AM
Reply #13
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Dr PennyStock

Administrator
These MF's.. Ill tell you what, if I Ever get ahold of one of these creatures....!!

Yeah, me first ;D
Dr PennyStock

August 27, 2009, 10:22:12 AM
Reply #14
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Dr PennyStock

Administrator
Found a picture of one....

That is what they think of us traders ;D
Dr PennyStock