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To: andrew feldman who wrote (867)12/15/1997 6:16:00 AM
From: Arthur Tang  Read Replies (1) | Respond to of 1911
 
Thank you, Andrew. The traders, some market makers registered, are different sizes. The ones with large number of offices are better when distribution starts. Some only do market making with only small number of customers. The problem of price calling by market makers, is most important when large number of people had limit orders to sell, which is resistance. Then there are stop loss orders which is not support but trouble for the stockholders. The stop loss orders are used by the market makers (to make money) when it (business) is slow.

So, when momentum players come in; the market is defined. The resistance is to prevent these people to make a profit; the price never goes above limit sell orders. The stop loss orders are used to make a profit for the market makers. Remember your profits (all customers) are paid by the market makers. So, they have to eat you alive (raw meat) to make a living.

Long term stockholders hate momentum players, because the orderly market making is paused (wasted time)to go up and down to take them out.