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To: GraceZ who wrote (141440)1/3/2002 2:19:07 AM
From: marginnayan  Read Replies (4) of 436258
 
I work every day with a small group of public traders who are all former MMs. As MMs they were extremely successful for YEARS, as public traders most of them are slowly going bust and it hasn't taken very long, six months.

If public professional traders were former MMs, why are they are playing the game they know they simply cannot win.

I think hedge funds could be fall into the category of public professional traders.

Also is it not possible that MMs tend to make the stock volatile by competing among themselves to get max return for their trading firm. For example, a brokerage firm downgrades a stock and within next few hours another brokerage firm comes along defending the stock and in some cases even upgrading it. So look likes sometimes MM of a particular brokerage firm might be taking a hit and hence the professional trader. I do not think thousands of J6P sample buys can make a significant change to a stock price on a daily basis.
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