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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (273)	7/30/2000 2:49:51 PM
From: X Y Zebra	Read Replies (1) \| Respond to of 1426

I would think that if a market maker is doing his job well, he is going short at the top rather than pushing a stock down during a decline. Indeed, but still, their action is not a guarantee, the market could still move it higher. This strengthens the idea of participating in more liquid stocks, where easily the market at large is who establishes the 'final' price. Here, I feel the playing field is more level in terms that one's analysis can be better than others that have more toys to facilitate the day-trading activity. In other words: why on earth participate on thinly traded stocks ? If so, then accept the risks. My uncle Gonzo used to tell me: "Boy, don't cry for the spilt marmalade, take it like a man" Moi day trade ? Yes, a little but only when momentum is extraordinary and fairly easy identifiable, I am no martyr, nor courageous fool, I prefer 'position' trading and well capitalized so if I make a mistake, I have a choice: 1. take the loss. 2. leave it to my heirs <g> [but only if it is a good company], (whenever that will occur, i.e. heirs) Against my positions, the use of options, (preferably covered, with the exception of puts when I like the stock), is a parallel activity. Remember that I am no courageous fool, but I confess to my sin, yes sometimes I have gone naked calls. The results ? hmm fair, some wins some losses. I will say, not worth the risk, I prefer being clothed, warmer and fuzzier, (and much less risky). Alternatively in case of an error, (particularly with heavy use of margin), the choices are: 1. lose money. 2. wait, and lose more money. And they, as well as others with short positions are the ones that provide the floor for the stock when they start covering their short position. Ah yes, indeed, even the possibility of a "short covering rally". They do provide a useful service don't they? Liquidity, Market Making, and all the rest, I think they should have the right to earn a profit --if they do it correctly. Later, must go.