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To: The Ox who wrote (50554)	9/7/1999 7:58:00 PM
From: SargeK	Respond to of 95453

Michael, What I tried to say (obviously not successfully) was with only a 1/16 spread the MMs DO NOT have a corner on the market like they do in many small cap (low volume) issues. I bought 5k TODAY @ 17/32 and sold 5k TODAY @ 9/16 yielding a net profit of $292.41 (broker fees were $9.99 in and $10.10 out). Not a bad one day return on $2656.25. According to your reasoning I couldn't have made a profit because you think the MMs took it all. I'll just put it down as luck and hope it continues. Sigh!! SargeK On DATEK's ECN Island the best bid is now 1/2 for 600 shares and the best Ask is 1 1/4 for 1k shares. Now that is a SPREAD......

To: The Ox who wrote (50554)	9/7/1999 8:50:00 PM
From: upanddown	Read Replies (1) \| Respond to of 95453

Michael Your point to Sarge about the spread percentage on penny-ante stocks was very well understood by me at least. Surprised you didn't jump on him for claiming a 1/16 profit when it appears he only made a 1/32.<vbg> Your point had nothing to do with the action in the stock today. He caught a nice day and it was a successful trade, but since he bought at the ask and sold at the bid with both transactions done with a 1/16 spread, it basically cost him 22% of his capital for the round turn plus commissions. I think the MM did better than Sarge but hey, share the wealth.<ggg> I get the impression that people don't spend a lot of time thinking about spreads on the teeny-weenys. They should because they can be a lot more costly than the commissions but hell, what does it matter...they're all doubling by month-end and MM's have families to feed too.<vbg> John