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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) -- Ignore unavailable to you. Want to Upgrade?

To: DSPetry who wrote (43296)	3/8/2000 6:58:00 AM
From: ISOMAN	Read Replies (1) \| Respond to of 43774

You missed the thrust of that article, it wasn't saying online brokers are bad, It was saying that market makers like NITE, and especially NITE, have an advantage over the investing public... It doesn't matter if 1000 people place their order via online broker, or over the phone with a full service broker, the Market Makers, can still see all of those orders as they line up and they have software that can tell them what the differental is before the bell, and make a lot of money doing it..... That's why most would be daytraders get slaughtered....they really can't read the situation on a level two screen.... For instance, if you saw that your favorite $25 stock, gapped up $2 at the open, what would your do? #1 be pleased #2 buy more #3 sell most people fit into 1 or 2 yet most likely the correct response is to sell, and buy back when it returns to $25 It takes experience to see what to do in that situation.....which most people lack. (tip the reason you want to sell when a stock gaps up at the open , usually, is because all of the daytrading pros, will short sell the stock when they see this, and that puts downward pressure on the stock....conversely, if it gaps down, time to buy) Course with otc, the rules are put in a blender, since the OTC is the cespool of the stock world....