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Strategies & Market Trends : DAYTRADING Fundamentals

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To: E. Davies who wrote (4640)10/4/1999 2:54:00 PM
From: GraceZ  Read Replies (1) of 18137
 
Eric- So let me get this straight....you have 1000 shares you want to sell...you see they are only filling 100 share orders and put all 1000 on one order and you are complaining that they moved the price? I dare say this doesn't happen with a big stock that has lot of liquidity, like Intel. The problem here is that you think that your order won't move the market in either direction. A MM that had to move a big block would always sell it in small equal portions throughout the day. What's a big block? Obviously, it depends on the stock. Like I said in my previous post these MMs got burned when the Nets fell all at once (they got caught short on the way up and long on the way down). The big swings in these low float jobs can work with you or against you, and they can work with or against the MM.

Something my friend said after last December kind of stuck in my mind, that her firm was rethinking the idea of having a trading desk....reason, because it was changing from a profit center to an expense!
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