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Re: tamipri post# 59611

Friday, 03/19/2010 12:44:20 PM

Friday, March 19, 2010 12:44:20 PM

Post# of 83044
100k trades explained

Since this stock's price is too low, no one will make a trade for negative dollars, so anything >0 goes, thus 100k share blocks apply and essentially mean the same thing as 100 which is used for higher priced stocks.

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.

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