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

To: SteveDavis who wrote (517)	8/13/2000 4:58:15 PM
From: Janice Shell	Read Replies (1) \| Respond to of 1426

Here's a real beauty. I'm sure everyone will enjoy it; my thanks to Rayvon for the discovery: By: rayvon $$$$ Reply To: 3449 by janice123 $$$$ Saturday, 12 Aug 2000 at 7:12 PM EDT Post # of 3525 Janice,Am I correct in stating that there is no order handling procedures for BB`s? This is a copy of a copy from another board.Thought you would grin on this one. By: morericher $$$ Reply To: None Friday, 11 Aug 2000 at 8:49 PM EDT Post # of 19566 STWW Investors, IMPORTANT information!! I copied and pasted from an another RB board for your use... It certainly is very convincing idea... Hey folks...here is some good info on how MM's work.If AMDI hits paydirt from some news and climbs,we can work together to get as much profit for ourselves instead of giving it away needlessly. Here's the relevent part...the market makers establish the profit that they feel is approprate,which is based on the risk,the stock price and desired gross profit(they call it a house preamium,I call it skimming!). Apparently,the MM's are going to make 45 cents per share profit,as long as ECNC is in this price range.If you place a MARKET order to buy,you will pay 45 cents more than the MM's paid for the stock...NO MATTER WHAT THE PRICE THE MM PAID! Now,this is the part where the broker SWEARS we have some control over our own destiny...He stressed that we should NEVER use market orders when we sell!He use LIMIT ordes only,and here's why... If everyone used ONLY a limit orders when they sold,say a limit order of 4.50 for instance,and ALL of the market orders dry up,the price will automatically revert to 45 cents above the lowest price the MM can buy the stock for...in this case it would jump ot 4.95 if we ratchet up again,the MM WILL continue to chase the buyers upward....without volume they make nothing and they WILL NOT make nothing! The MM's DO NOT care about the value of XxX stock.They ONLY care about the 45 cent spread they pocket!It's up to the share holders (collectively) to have the discipline to utilize limit orders,and get the stock price above the reach of the MM's and into the open market market.Once this is done,the market forces will reassert themselves and establish the upper resitance level for the stock price.This might already be $12.00,$15.00 who knows. However,as long as we keep buying and selling with market orders,the MM's will keep the price as LOW as possible...that awy whenyou buy $1,000 worth of xxxx stock you get 2,000 shares instead of 1,000 shares,and they make $5oo instead of $250!( grinning as he explained that!). I hope this makes sense...and I thought it might help someone out there...but,it's always good to know who your enemies are,anyway...! Regards, ragingbull.altavista.com