A Simple List of General Do's & Dont's of Trading: Message Board

STOCKTALK

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.

Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Arthur Tang who wrote (724)	10/9/2000 5:21:56 AM
From: Arthur Tang	Read Replies (1) of 769

When market pulls back, investor gets disinterested about investment and market in general. The inexperienced may sell out and never come back. The professional may do tax loss selling and average down plus doing some window dressing. The market can be examined by the volume traded. The small stocks were going with no trades at all for days on ends. And the large stock have volume of bids. Ask sizes went up with no takers. Next month maybe they will come back. Fortunately, the money is on the side line. Otherwise a 1987 crash can happen again; if market makers do not have moves to counter excessive pull backs. Current generation of market makers are daytraders not experienced with declining volume. You have to have cash pool for pull backs. The cash pool must be somebody else's shorts. You find the shorts and you find a customer. Life on the street is looking for the buyers and sellers on the sidelines. Online customers are mostly inexperienced investors. Waiting for them to come back destroyed many a market maker, even Knight suffered inactivity. Market makers must solicit customers among themselves in times of tax loss selling.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next