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Re: phithebuilder post# 48511

Thursday, 01/30/2014 2:20:59 PM

Thursday, January 30, 2014 2:20:59 PM

Post# of 91007
Float Lock Down (FLD)

When we buy and hold a stock, we're taking shares out of the market and in that process we reduce the float (the number of shares that are actually available for trading, not counting any restricted shares). When we have effectively bought all of stock (SVFC) that is practically available for trading, it's called: “Float Lock Down.”

Any shares purchased after the Float Lock Down point, means the market makers do not have shares to sell! So they must either borrow shares to sell short or they naked short (sell shares that do not exist). When this event occurs, the market maker's job is to try and free up shares (move the stock higher, in order to entice sellers).

If the market makers try to free up shares, then it's called a “shake.” They'll take the stock's price upward, and then short it down in order to create panic and/or take out stop-loss orders (I NEVER PLACE A STOP-LOSS ORDER).

If people do not sell and hold onto the stock (SVFC) for a higher valuation, then the market makers will determine (after a period of time) if they want to take the stock back up and try to encourage more selling... And the whole game starts over again!
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