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Re: drucwolf post# 3849

Tuesday, 09/22/2009 12:35:06 AM

Tuesday, September 22, 2009 12:35:06 AM

Post# of 94785
I've done stuff like that before. An example, I have moved the majority of my cash into long positions. I have $80 total in my account. I get slapped with a $20 margin call because my ECN provider has drafted my account for $100 for my monthly software fee. What do I do? Sell off some of my least favorite stock to cover the margin.. at whatever price I can get it at.

Or, maybe I'm trying to exit a position, and nobody is paying attention to my stock and there is no liquidity. I hit the bid to grab some attention. Maybe someone will now bid high enough I can get out.

Maybe I'm trying to make the stock look bad because I want to buy more. The sell side liquidity has dried up and buyers have also dried up. I want more shares but I don't want to pay the ask. I can sell off a few as a sacrifice in the hopes someone will bring their offer down.

Never be amazed at what happens in the market. Trading stocks is far more than just fundamentals and charts. It is a game, and you have to beat your opponent. The penny market is full of weaker opponents who lack both the experience and patience to play the game properly.

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