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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: sandintoes who wrote (18714)	2/1/2001 11:00:04 PM
From: DOUG H	Read Replies (1) \| Respond to of 19374

Sandi, it seems the real trick is to see how large of gap the stock opens at. Remember, a gap up is nothing more than the stock opening for trading that day at a price higher than the previous day. So say I want to buy JNPR because Maria and the CNBC bunch are saying today looks like a rally, I may not be able to buy the stock for anything less than 5-10% more than the previous day. As Walkingstick mentioned, if I'm a MM in JNPR my whole inventory is marked up 10%. Now maybe I wanna cash a little in, maybe cash a lot in at that higher price till the buying pressure subsides. Then, the stock drifts lower. If all the buyers are in, who's left to drive up the stock? No one. The stock drifts lower and maybe I buy some back from you with your money as your newly purchased shares plunge 5% after you just bought em', more buyers appear as the stock seems to have found it's footing (on account of my buying)and the stock moves back up. Meanwhile, who starts doing the selling? Me. (the MM) It's a game rigged against the neophyte. If you understand that, you're ahead of most.