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Thursday, September 04, 2008 3:33:46 PM
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Penny traders believe that Market Makers (MM) will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are such a small amount of shares (worth no more than 5 or 10 dollars) that no trader would have paid a commission that costs more than the amount of shares bought. The "signals" are from one MM to another.
* 100 I need shares.
* 200 I need shares badly,but do not take the stock down.
* 300 Take the price down so I can load shares
* 400 Keep trading it sideways.
* 500 Gap the stock. This gap can be either up or down, depending on the direction of the 500 signal.
Remeber this is a theory put forth by a lot of penny stock traders. This is not a guaranteed trading method so please use common sense and purchase stocks only after researching your investment thoroughly.
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They forgot this vort:
* 1700 this thing gonna go bigly wigly!!!
lol.
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