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stole it from another board
Market Maker's Operating Procedure
The savvy long-term investors never chase stocks up. For the most part that is momentum players and daytraders where most of it or what follows is dumb money. Instead the long-term investors use a couple of simple strategies in order to position themselves. One is to find a stock no one immediately sees has huge potential and accumulate. Long-term investors are not interested in trading against the public mind or the dumb money. That's where the majority of the money can be made but even more can be made if the base of a stock is held extremely strong by investors. However the second is not to doubt the research which is the underlying basis for going long and holding.
More and more investors are winning the game nowadays despite all bashers that float through the Internet that has become part of the game. Floor traders of market makers often watch CNBC, news wires and bulletin boards in order to follow the market during trading session. OTC BB market makers (MMs) don't use fundamental and technical analysis. However, what they do realize is a lot of dumb money does use this newest nitch charting or TA (Technical Analysis) to run a stock either up or down. To the MMs this is like taking candy from a baby. Simply they will paint the tape and use whatever tactic to affect the charting bands. Thus the public and dumb money they will have eating out of their hands. Effectively the MMs can show a strong stock growing weak by manipulating the close price in order to generate selling volume, delaying trading time to manipulate trading activities, or even stalling the ask without honoring orders to hold a stock price.
MMs follow a simple code of business when making a market in a stock especially an OTC BB. That is the level that stocks will seek that yields the most volume. Now this is very important because they make money on the volume buying at the bid and selling at the ask. In other words, by making the market they are buying low and selling high. Now smart money adheres to that rule, so do all the market makers. They could careless whether the stock is at $83 or at $0.23. All they care about is the action thus being able to sell stock at the offer (The high) and buy stock at the bid (The low). To increase their profitability, they make the spread as great as possible on as many shares as they can especially if the volume falls off.
When they have mostly all "buy" orders, that's not the price that's going to yield the most volume. They need both buy and sells to get the maximum action. Remember, MMs play the volume. If the volume decreases and there are mostly Buys that become a one way volume, Buy volume. So what they do is let the stock run up to a price where it runs out of steam. They fill all the buy orders there that they can and then comes the pullback one way or another naturally or induced. During the pull back they can buy tons of shares and flip them to those averaging down or trying to catch the bounce. At some price, the stock will be relatively stable and yield the most volume. Now that is the average price you will see
The average price is the point where a stock seeks a level where MMs can profit on the most volume. So during the day that is the price that MMs and momentum/day traders want to see the stock at. Why? Because they know the public and dumb money was chasing the price thing up. Most of the time, the MMs love a flurry of Market Orders which is a dead sign of an artificial run or momentum. Merely it is money in the bank for them. Most get hung in a momentum or day trade or by the tactics of Market makers, who are in the business to screw the public every chance they get and the NASD is not going to do anything about it. They are merely making the market liquid is there reasoning.
The market makers have created an added complication to the OTCBB's chaos of the already volatile intra-day price movements created by dumb money, momentum and day-traders. MMs can not relate to long-term holders in the OTC BB. That makes absolutely no sense what so ever. They feel a large percentage of trades in the OTC BB market consist of short-term or day-trades, MMs merely view the barrage of buy and sell orders as relatively neutral to the market. How they figure it is when the average dumb money buys shares in a company, the MMs feel or rather know with some certainty it is very likely that dumb money will want to sell back those shares relatively quick on the slightest drop.
Now somewhat comfortable with this logic the MMs merely short sells into the buying and attempts to take the stock down in an effort to "shake out" the weak. Since it is tough to know for sure whether a move is the beginning of a trend, or a routine shake out, this type of deception works quite well for the MMs. What the long-termers do to a stock is surprise the MMs because instead of falling the shorting has no effect and the price goes up. Now that puts the MM at selling low through shorting and thus having to buy high in order to cover.
Boy, when this happens, the MMs are not very happy campers. The investors and traders are supposed to be doing that no them. Now it becomes time to pull out every trick and tactic in the book in order to attempt to get a Bear Raid at every dollar mark or percent from where the stock started. Could be a penny in smaller priced securities? What MMs do is give you a chance to make a small amount of money for your momentum and day trading style by shorting it at these levels and trying to get a bear raid each time. Each failure is compounding the MMs short position so they let it go to the next level. Now come more deliberate tactics MMs use to coerce Bear Raid or panic selling.
Once the MM is caught short and the strength of the buy is overpowering the MM will want to cover his short position. So the MMs call up one of his friendly MMs and says some like "the weather is sure rough today." The MM along with the other "friendly MM initiates a down tick about the same time. Now this can also be done with a certain amount of shares such as an infamous 100 shares flag. This down tick gives the illusion of weakness designed to hopefully begin the bear raid of selling. The fickle, fearful, day trader, momentum and short term begin to sell out allowing the MM to cover his short position at lower prices. They will move it down quickly to get it to a price of least financial damage. Problem they have is long-term investors in the OTC BB. They start accumulating and buying comes flying in when they take it too far thus the MMs took it to the point of volume again and not only investors the other MMs step in the make money on the spread.
Alas the poor MM does not get to cover. Now comes various tactics like stalling, boxing, or even locking the Bid and Ask for a while.
Of course, MMs aggressively deny any sort of collusion designed to fix quotes or spreads, but a recent SEC investigation tells another story.
MMs have a vast resource of tactics and it would take probably more than my lifetime to figure them all out.
So how do investors somehow manage to overcome the obvious deception in OTCBB arena? One answer is indirection trading style by going long which the MMs do not expect. In the war between investors and public companies on the OTC BB vs the MMs, if the MMs have all the advantages due to position or other factors, direct confrontation such as momentum or day trading hitting the stock is a definite death sentence.
However, an indirect approach tends to weaken the path of least resistance before slowly overcoming it. The most effective way is long-term investors slowly accumulating and holding thus drawing the MMs out of its defenses making them as naked as their short position. This is war so this slow accumulation and holding for the long term easily achieves the desired effect to force MMs to cover and knock off the tactics or bury themselves deeper.
The MMs when caught will especially use every trick and tactic in the book to get a Bear Raid thus playing on the individual fear of most people. The MMs feel they have information and position advantages over the investors as long as the holding of the stock is in weak hands or short term holders. Since they are OTC BB MMs who believe all OTCBB companies are not worth investing and management is ineffective regardless what is happening within the company. Furthermore, MMs know they are in the position to impose a great deal of influence in OTC BB stocks trading when it suits their needs.
This inherent power of position enables the MMs to move the markets at any time up or down. As a result, the only way to draw them out of their favorable position is going long. Now this does not mean just any company but to effectively nail the MMs, Longs must find the great company on the floor and accumulate long before the MM tactics and games begin.
I agree. I have a bunch of ADCS I bought years ago at .0001 haven't looked at my account in years don't use that one anymore. I'm ahead 14,000.00 and its still running.
Nobody knows nothing but the stock is going up. Its a pink sheet who know's. JMHO
No one selling 7's strong hands now. Nobody bit the 6 bid.
Last call for .0007s We print 8's and we will be on more radar people will take notice
Any kind of volume will take out the 7's then new 52 week high will bring more attention. JMHO
You are going to have to buy the 7's after 7's this will fly. JMHO
Looks like there is some movement in the right direction this show is not over.
I'll bet you can buy in the threes tomorrow
Clay Could you do a chart on ADCS been looking good lately.
Thanks in advance.
Tomorrow will be a profit takers day we may see .0007 but I think cheepies can be had. If this is anywhere near legit we well do well in the near future. 100% Gain today hard not to take if you can. I will wait I won't sell until at least a penny and then will sell only a few million to get take profit. This could be real but I do have my doubts. I have been in this for a long time like I said before it was stagnant money I'm not afraid to wait it out. if it goes back to .0001 oh well nothing lost here. I have 20 mil from 2004 that I own for nothing got my investment back years ago. Waiting for the mother load. I wish us all luck but there are plenty of players that won't hold over the weekend if they have a profit. JMHO
Things are quiet this morning
I have 20 mil @ .0001 have had for years considered it as lost. I won't sell until It hits a penny. If it does great in it retreats oh well I have time or my
kids do.
I have been in this stock for 4 years it just woke up for no reason. I have 6 Mil shares at .0001 I am holding because I don't know why it was a loss for me and it is alive. I will wait it cost me nothing I forgot about this. Don't need the money and maybe it will fly. My sell order is in for .0020 I will be very happy if not I lost nothing that wasn't a loss already.
If you are playing with money you can afford to lose play your gut. If you are playing with the rent or mortgage you are sick get help.
Just my educated decision
I am out anyone have more coolaid?
You are all too young Good o'l Jimmy
Last post for me I think.
Wish you all well but the sub penny stock market will lie to you and take your money no way to do real DD. Good luck to you all just be careful. Just my opinion. I was $200,000 richer a few years ago I bought the Hype on too many of these all I am saying is don't fall in love with a company that you can't really research and this is one of them. I hope I am wrong with this one because I hate to see people lose on a wing and a prayer. That's what these stocks are. Again JMHO Wish you all well.
If they ran this up they could make better gains think about it.
Just saying Just be careful hope you make money. Been here done this lost my shirt. JMO
Not with this company but with many others they talk a great game.
This IMO will be a .0001 stock in 6 months Another Pump and dump good luck reading the signs. Hope you all make money but it will be at .0001 in a few months Just my opinion.
But who am I but an experienced sub penny trader Don't fall in love with this or any sub penny they all lie.
Again JMHO
Reverse spilt killed many of us then they went dormant Could be money made here unless they do it again. I don't trust them. Touchard and Chin are involved.JMHO
Good luck to you all I own very few shares had many before there last reverse split money can be made but be careful IMO not a real company Google the CEO Good luck either way.
Hey an honest poster lol
Sorry no PM
I tried to sell privately no dice been over two years. Now selling to the public 25 million for sale @.0001 I will lose the commission.
Tell your friends tell your relatives tell them to buy
I want out and I can use their money. I waited for them I held for a long time. My loss their gain. For Sale I still have 25 Million for sale at .0001 tell them to hurry and buy I really need the money my order to sell has been in for the past 120 days updated daily. none sold. Tell them before its too late and have to buy someone else s .0001,s. Please pump enough to get mine sold.
Thank you in advance.
After hours means nothing with sub pennies I know of 25 million for sale at .0001
I know I own them.
Many more behind that I believe.
JMO
Got one in the mail yesterday
lol lol lol
Got this Email the other day. There is a pump on this.
CALL YOUR BROKER RIGHT NOW!!!
RXA C.PK lives by the mantra that multi-billionaire and investment mogul
Warren Buffett!
RXA C.PK - buy some.
Its a steel at: .02
Could hit: 1.00
Traders motto: Strong Buy
Previously trading down from a high of 0.74 per share. Start buying at
its lowest on Tuesday July 26.
I am not recommending this Just stating I got that for an E-Mail