InvestorsHub Logo
Followers 2
Posts 584
Boards Moderated 0
Alias Born 04/29/2011

Re: carjon post# 6810

Thursday, 05/19/2011 2:20:54 PM

Thursday, May 19, 2011 2:20:54 PM

Post# of 19899
The market maker (specialist) is granted various informational and trade execution advantages and has a lot of power. They can see everything. WHEN YOU ENTER A STOP LOSS ORDER THE MARKET MAKERS CAN SEE THEM! You may notice from time to time a stock hit a short term low and then move up again. Market makers will do everything in their power to hit the stop losses to build up more shares for their account if they believe the stock will rise again. A stop loss order becomes a market order when it is triggered. If the volume of the bids are low your stop loss will trigger a much lower sale price and bring the stock down with it (referred to as slippage).

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.