OT: Everything I have ever observed CONFIRMS that everything you have said on this matter is complete nonsense only gullible people would believe.
Example: A few years ago, I watched a microcap (which I did NOT own at the time) slide from .05 (5 pennies) to .004 (4 tenths of one penny). Most of the holders were crushed out. I stepped in and bought $200,000 worth of the stuff at .005. The stock remained completely stationary for about 10 months after that, but I never sold a single share. One day, one of the microcap hype services started really pushing and hyping this stock. It shot up to .052 (5.2 pennies) the next day on massive volume. The bid was .049 and the ask was .059. I IMMEDIATELY placed a good until cancelled LIMIT sell order (NOT all or none) at .045, well below the BID. I did this to ensure NO "funny stuff" would happen and that my order would be filled, at least partially. I placed this order with a live broker and confirmed the bid/ask spread. He asked me why I was placing the order below the bid, and he said the order should easily be filled at the bid. I told him I just wanted out as quickly as possible, but not on a market order. For the next hour, the stock traded like crazy on BIG volume with the listed BID remaining well above my BID. Volume dried up later in the day, and the stock fell back to .010. I called the broker and spoke to supervisor after supervisor for 4 HOURS and threatened to close my account! The next morning, the stock raced up from its close of .010 to my bid price, my order was immediately filled, and then the stock fell back to .005 again the same day. I have encountered similar events, to a lesser degree, with big cap stocks.
For the past 14 months, I have only traded indices and derivatives based on the benchmark indices and have experienced no problems. I will never buy a single equity again.
Would you care to speculate as to why the MM's ignored my order and filled other sells at even higher prices than mine? HINT: Corrupt MM's. If I wouldn't have complained to the broker and threatened to close my account, I would have been screwed.
And by the way, I'm no "Johnny Come Lately." I've been doing this stuff since Micro$not was in diapers.
John |
