Thursday, November 15, 2018 9:34:26 AM
I know we all are waiting on LLBO to pop but while we wait I'd like to make an argument for the OTC especially in down markets.
The recent trading in the DOW and Nasdaq showed just how manipulated those markets have become via high frequency trading and the lack of market makers to oversee and manage market corrections. Thus in down markets these program crush all stocks. Most of us own DOW and Nasdaq stocks in our retirement accounts and index funds. We along with everyone else are losing precious retirement savings to computer generated trades via high frequency trading programs. These programs manipulate stock prices much more than an OTC MM can do. These programs feed on highly liquid stocks. Thus, my "real stocks" are being ripped apart via these trading programs. I am suggesting that perhaps the OTC might actually be a "fairer" market to trade for retail investors like us.
SO when I rail on the MM's for manipulating LLBO's price action, which they do, all I have to do is go look at most any "real stock" I own like GE or IQ or RIO and see similar to greater losses via the lack of MM's and the implementation of institutional trading programs that create unfair trading consequences especially for the retail trader like us. In summary, I don't think we can win trading individual stocks or if we do its due to luck.
In summary, my concern is that retail investors are providing the fuel for these trading programs and at some point the fuel runs out and the trading programs feed on themselves that leads to a crash. SO with all that said, I added 300K shares yesterday to my LLBO position reduced my position in GE and RIO. Thoughts?
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