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Re: littlbyrdy post# 362

Monday, 09/14/2015 1:23:48 PM

Monday, September 14, 2015 1:23:48 PM

Post# of 805
Well there's definitely something to the whole conspiracy theories, but I guess my point was that the action we were and are seeing isn't bad (obviously not today as it's looking strong as all get out).

As for shorting a penny stock, many retail brokers don't let you but I promise it's very possible even for us retail traders with the right broker, and the big boys can short no questions asked. As for the short interest you see, that's actually mainly going to be MMs providing liquidity, and that is par for the course in penny stocks. If they didn't short in order to sell at the ask, shares would be much tougher to come by and the trading would be even more wacky and sporadic. The problem though is the MMs get to abuse that privilege and can manipulate the price action to help milk the spread. Short at the ask, exhaust the buyers, then cover at the bid/ at lower levels. They are masters at this art and it will explain a lot of the action you are confused about. However they can only do so to certain extents, then they have to let it run and eventually they will repeat the process, except at higher levels. It's all a big game where they get to more or less control the flow and rules, but it's still possible for us little guys to profit if we play things right.

Here's a good read on the subject. A bit outdated and doesn't explain everything, but some good worthwhile info contained nonetheless.

https://www.reddit.com/r/weedstocks/comments/1xydch/market_maker_speaks_out_ways_of_a_market_maker/

$TKOI is looking incredible now, great news, great chart, great accumulation, great potential. Cheers!