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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 408.24+2.3%Dec 22 4:00 PM EST

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To: TobagoJack who wrote (21992)9/5/2007 12:06:34 AM
From: energyplay  Read Replies (2) of 218659
 
ON these thin stocks, try something like this -

Let's assume we have 2.30 bid, 2.40 ask.

One way to get more when selling might be to do an ask in between, maybe 2.38 if you are willing to wait, or 2.32 if you want a little quicker response.

The other way (I have not tried this much) is to put out a chunk at 2.44. Start relatively early in the day.

The idea being that the market maker sees this, then walks the stock up to 2.60, picking up your chunk at 2.44 and then selling it to some one at 2.52 or 2.56.

Now offer another chunk at 2.54. The market maker may be able to walk the stock up some more....

Upward movement attracts buyers.

Basically, you are inventory to the market maker, and if they can move the price around to where they can make money moving your inventory, they will do so.
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