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Strategies & Market Trends : STOCKS WITH ATTITUDE TEAM - FA/TA AND EVERYTHING ELSE

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To: FARRIS who wrote (131)12/14/1997 2:09:00 PM
From: TheInvestor  Read Replies (1) of 2377
 
Farris:
I agree that the MM has the upper hand, because they control the
price and the BID and ASK spread. If they put a spread of more than
1/4 point on a stock that trades less than $10, we should stay away
from it.

Why? because if we get in, we either might not be able to
get out without a serious loss, or if we refuse to take a Market order
and only use limit order. The MM can choose not to fill our orders
even though we want to sell at the BID price. I have seen that happen
to. I also, saw the buy limit order not execute on the ASK price either.

In these scenarious one should be carefull with MM shannigans and stay away from that stock no matter how good it is in the charts or your friend tells you aboute it. I agree with GB we should be SKEPTICLE at times like this.

Regards,
Ben
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