1 Are they trading firms or individuals with perhaps millions to trade?
2. How does a market maker influence the market?
3. Is it possible for any of us to eventually become market makers?
4. Should we or should we not follow market makers moves?
5. What do market makers know that we don't?
6. What does otccharts offer a market maker that they don't offer regular subscribers?
All help appreciated. Thanks. Matt
Dardadog says he doesn't follow MM's but can he say he has ever done the opposite of what they're doing? I'm saying that it's almost impossible for a stock to fall in price if there are more buyers. So for Dardadog's picks to rise the MM's can't be selling their shares.
Lastly, Dardadog mentioned in one of his posts that he heard otccharts has an option that shows where market markers are focusing but he never looked into where that option is. Does anyone else know where that is? Matt
I guess the answer is that if you could follow MM's that everyone would do it. The market has the biggest influence not the MM's. They can sway it a little but to what extent they only know.
Ric
[This message has been edited by Ric (edited October 26, 2004).]
they sponsor Elliot Sadler in Nascar
and they look really nasty if they fall between the cushions of your couch and fester for a few months...LOL
All are supposed to work the same way. They are to represent the market ( What the traders or investors want to do at a given point in time. ) Problem is that the only one that does it all the time is the ECN’s.
The human factor in the Market Maker world and Specialist world is where it can get foggy especially in fast markets. How does it get foggy?
They will post both buys and sells. This will double the volume count for trades and unit volume.
They will not post the best offer or best sell prices. The best refers to the lowest or best sell price offered by a seller and or the best buy price offered buy a buyer. This very prominent in the pinks and other otcbb issues.
Forgot the name of the stock I did it with but a few years back I noticed a NYSE stock with a .30 spread between the posted bid and ask. I offered a nickel more than the bid and within seconds it was posted as the best bid. I got filled in the next few minutes. We then turned around and made an offer to sell at a nickel less than the best offer. Within seconds I was on the ask and it filled for a $ 0.20 profit. I think I did it about 5 or 6 times in one day. Finally the specialist closed the gap to .o5 so I could no longer make the market.
These human interventions in your stock or trading and investing is totally a scam in my opinion. They were created to maintain a more orderly market for stocks. They use the “more orderly” job description to pocket your money by creating false markets when they do not post the best bid and or ask for any issue.