SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : ProNetLink...PNLK...Click here to enter
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mark Konrad who wrote (21050)6/26/1999 3:51:00 PM
From: TsioKawe  Read Replies (3) of 40688
 
The Bulldozer Effect...from the electronic day Traders book...

The simplest manner in which market makers generate profits is to "move" the stock to a desired level and "put out a print" to clean up the order. Once this order is out of the way, market makers will attempt to cover at a favorable price. These traders have tremendous amounts of capital at their disposal, which they will use to "run" or "tank" a stock in order to shake out other traders. These moves are commonly referred to as "short squeezes" They occur when traders push the prices of stocks high enough to make short traders cover their positions. These moves are brief and violent. However recognizing the "bulldozer effect" at or near its genesis can produce a windfall gain for the astute day trader. A characteristic pattern of this bulldozer effect is observing a single firm buying large quantities of stock at the offer-by getting it from other traders in the office or by preferencing the Island which shows on FYI-while simultaneously going high bid.

In summary, by pushing the price of the stock up, some of the shorts are forced to cover. This creates a chain reaction of other shorts trying to cover, which further accelerates the price upwards.

~~let the games begin~~

TK
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News