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Re: fourkids_9pets post# 3249

Monday, 11/14/2011 4:38:31 PM

Monday, November 14, 2011 4:38:31 PM

Post# of 8064
There is no "thinking" these are the facts, you can either choose to accecpt them or ignore them, that is up to you. N00bs are the only ones who think that MMs are "out to get them" and "hold stocks down". Experienced traders actually know how they work. MMs make money on the spread, they very very very rarely ever hold shares long, and don't care what price they buy or sell at, as again the make money on the spread.

I am sure you use a big broker like Etrade or TDA, where all you do is put in your order and hit submit and it magically shows up in the market at what price you picked. I use a prop trader that allows you to enter in manual routes, select what ever market maker you want, and even hide shares. When you see people down ticking, bid up ticking, etc, that is simply someone who has access to a direct route trading account that allows people to select what ever MMs they want and move them to what ever price points they want.

I could literally go on there, and place sell orders on the ask side at 5 different price points, using 5 different market makers. If you were watching level 2, I am sure you would be screaming about how the "MMs are stacking the ask" and "playing their games". The MMs didn't do anything that I didn't tell them to do.

Now of course I am long and strong here and haven't sold a single share, but that is how this works. If you see the bid up ticking, or a lot of people stacking the ask, those are NOT the market makers doing that on their own, thats people using them and setting them up like that.

Market maker manipulation is very real, but its done by traders not the market makers. Market makers are simply automated computers that are there to add liquidity to the market by buying and selling peoples shares. They don't have some "agenda" where they are trying to knock down the pps or raise it up. They don't trade the same way human traders trade. The sooner you learn these facts the smarter you will be when it comes to trading....


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