InvestorsHub Logo

Gooddolphin

11/21/14 5:38 AM

#97144 RE: IcePick06 #97143

Interesting concept...

"You have to enjoy the ride on the train that is driven ONLY by these market makers."


Odessa99

11/21/14 7:43 AM

#97160 RE: IcePick06 #97143

Thanks IcePick06. And you make an excellent point regarding the triggering of cascading stop losses on the way down, amplifying the downward price impact.

For savvy OTC traders/investors, understanding these phenomenon aid in generating profitable trades.

Great explanation. I would add also that bid whacking by flippers and stop losses beings triggered as the PPS falls from mm's shorting (remember market makers can see orders clustered around a specific price and know they are likely stop orders) compounds this shorting tactic.

This is another reason why so many OTC traders flip these stocks. You have to enjoy the ride on the train that is driven ONLY by these market makers.



DEWM