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

To: Harbie who wrote (446)	8/5/2000 7:28:38 PM
From: ahhaha	Read Replies (1) \| Respond to of 1426

You're forgetting that there is a difference between operating as agent and operating as principal. Most of the B/A posting, of posting changes, are caused by the public bobbing and weaving in an attempt to beat the other public players. There's little or no MM involvement for their own accounts. Why should they be involved? They can't make money when the public is in a random walk frenzy. They can make money if the public suddenly grabs hold of the latest instantaneous truth and pulls their bids or offers. Then the market becomes illiquid and translates. The MM has to make a judgement about how much capital and at what price they will make the market assuming public orders are not available. That's almost never the case. You end up buying or selling some advantageous position and the public is back in superseding what you would have done. In no time they have the situation reversed and you are forced to make the market in the reverse extreme distributing or accumulating what you just accumulated or sold. You find yourself being led around by the nose by what the public does and if you do your job, the public forces you to make money. You read the effects of the public action as indicative of MM manipulation. This is irrational prejudice. You should be blaming your's and the public's greed and fear for the extremes that bag you.

To: Harbie who wrote (446)	8/7/2000 10:18:48 PM
From: gene_the_mm	Read Replies (1) \| Respond to of 1426

HARBIE... First, I cannot answer your question about CUSIP changes although I am sure that it would be a lengthy, complicated process. Second, there is nothing unusual about the scenario you described. If there were REAL buying pressure, the MM would be lifted out of the way on the offering. If you have HUGE buying pressure in ANY stock, no single MM is going to hold it down. What appears to have happened was sellers stepped in and sold into the buying. There is nothing illegal or unethical about that. How big is the float of this issue? I see situations like you just described all day in NMS stocks. Once momentum has started to 'wane' sellers tend to step in and attempt to lighten their positions. Do you realize that the move you describe on this particular stock is from $.60 to $.65 and would be almost a 10% move? Would it surprise you if a $60 stock moved to $65 on news and then pulled back? This is not meant to be offensive to you HARBIE so my apologies if I use your post to reinforce something to our readers. PEOPLE -- You need to keep profits in perspective. It is NOT about points in trading -- IT IS ABOUT PERCENTAGES! Most traders lose perspective of this when they trade pennies. Forgetting about 'conspiracy theories', if you can make 10% on a stock on news that is a GREAT move for a stock. Even 5%. What most penny stock traders forget is the size of the floats and the PERCENTAGE MOVES of these issues. The sellers that stepped in in that situation were all too aware of it I am sure. If I have missed some of your question forgive me. I certainly don't blame anyone for WANTING to hit the 'home run', but winning traders should take the 'singles and doubles' that the market gives them. Just my humble opinion. I hope that made sense and helped a little bit. Thanks for the great question HARBIE. All the best, -- Gene