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Re: sendo post# 45673

Saturday, 10/23/2010 10:27:56 AM

Saturday, October 23, 2010 10:27:56 AM

Post# of 59722
Let's also reflect on this... when you flip you buy at a low and sell at a high. Giving you more capital on each flip, which means you can load up more shares on the bottom.

This does a few things, 1 it allows for less shares to be available on the market, it allows the person to accumulate more and more; which in turn gives them slightly more control over the PPS due to less shares available on the market. This means flippers can also drive the cost up or maintain a steady channel for a stock to trade inside of while there is no buying pressure. Not to mention that you continually get dry powder to throw at the stock to help prevent it from tanking.

Without this MM's would take complete control of a stock and really tank the PPS. I can cite several stock tickers I got caught in this year that are perfect examples of what happens when there is no buying pressure and also no flipping going on.

You can argue buying at the ask pushes the PPS up, but that's only true if other people are doing it with you; and contrary to what members on here would have you believe.. it's simply not true. Just look at the L2 on any given day and the 20 minute - 1 hour time frames we seem to have between buys.