Bid.com International (BIDS) Message Board

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Microcap & Penny Stocks : Bid.com International (BIDS)

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To: Jerry B. who wrote (7558)	1/27/1999 11:02:00 PM
From: pud*	Read Replies (1) of 37507

jerry, think of it as a roller coaster. now think buy - sell - short. this is what market makers do. if you get 3 houses all doing this in concert, it makes for quite a ride.buying near end of day, selling in morning and shorting soon after that. barring any news, this momentum would keep things quite cyclical until volume dries up. oh and then there is the fact that they can see all of the stop losses on their own books. ie cannacord knows they have 40,000 (combined)shares on a stop loss at $5.50 so they sell short down to $5.55 (market permitting). if someone ticks it at $5.50, it triggers a 40,000 share sell off netting a minimum of .05 per share shorted for the market maker in profit. remember, they don't pay commission like we do, so sometimes it is in a trader's interest to sell off a stock in hopes of getting it cheaper (sometimes much cheaper - .05 was just an arbitrary figure as who knows how much damage a 40,000 share market order would do to a stock). think of the volume this creates and volume creates interest...it begins again!

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