Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Market Makers - What They Do and How They Do It -- Ignore unavailable to you. Want to Upgrade?

To: Richard L. Williams who wrote (326)	1/10/2000 1:58:00 AM
From: Rob S.	Respond to of 429

My point is not to "defend the market makers" but simply to point out that this is the way it is and until you can change it it is best to do what you can to understand what drives their decisions and how they effect the action of stocks. Who cares if there are market makers or elephants who control wall street as long as you know how to take advantage of whoever is running the show. Besides the MMs and specialists there are huge hedge funds and others who try their best to make money in the game. Sometimes these folks turn the tide of trading against the MMs, such as when they aggressively buy stocks after the MMs have taken a huge short position. Unfortunately, I don't have nearly the resources to play against the big boys on wall street - so I must try to play with them. Be honest, you want other peoples money: to buy stocks or options cheap and sell them to some other "investor" for a high price. "The stock market is a 'zero net sum game'" - no money is made, it just changes hands. While I don't like the actions of MMs when they catch me unawares, I have done much, much better by knowing a bit how they work and then betting with them rather than against them (or getting blind-sided by them).