Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Genesis Media Group, Inc (GNNX) -- Ignore unavailable to you. Want to Upgrade?

To: BEEF JERKEY who wrote (1080)	5/18/1998 1:27:00 PM
From: Charger	Read Replies (1) \| Respond to of 3129

Yes, it is highly unlikely that you will be able to sell at the ask or buy at the bid. That is a privelege reserved for the MM's, the entities from whom we buy and sell our shares. With a small float (GNNX float is about 3.5 mill - very small)the spread will tend to be larger than on some other BB's with larger floats. I have seen spreads as big as $2. Yes, this is where MM's make their money. (Don't get me started !!) The MM's will manipulate this. For instance, there might be several buys go through and they will drop the bid. This is done to perhaps scare people into selling - perhaps the MM's are short of shares. Or there might be little activity, the MM's are anticipating news, they might raise the bid in order to encourage us to sell to them. If the stock is relatively inactive, not a lot of volume going on, you might try to place your buy offer reasonably close to the ask and see if they will bite. I sat for 2 hours on Friday, trying to pick up some more at 2.12 when the ask was 2.18 and the MM's would bite. It was a face off and they won. I have had it go both ways. Depends how much you care. Now, here's a whole other thing to be aware of. Let's say the stock is moving up strongly and you want to let go of some of your shares, lock in some profit. If you put your sell offer at the bid, you will stop the action, especially on a small float like this. Have the courage to put your sell offer in above the bid and let them come to you. Otherwise, you will find, if you put it at the bid that they will not execute and drop the bid. This makes you go around your order and drop your bid. Then they do the same thing again and you find yourself chasing the bid down. While this helps others of us by affording a buying opportunity, it does not help you. On the other hand, if you are in a falling market, moving quickly, and the handwriting is on the wall, daytraders are simply dumping, it is a panic sell, whatever, and if you are in a panic also, put in your sell below the bid (the dang thing is falling anyway) in order to catch it on the way down. It will act sort of like a market order but not put you at the mercy of putting out a market order where the MM's will slay you! The same is true, imo, of a quicly rising market when you want to get in. Place your order above the ask, if you really want the stock (not too much above, mind you)and dont place a market order, same reason - you will get slayed. Now, there are some very experienced traders who, on a slowly moving stock, will put in a market order to buy. They may already be in the stock, and their market order may be for only a few shares, say 500 or 1000 shares (these are big traders, mind you, so that size is nothing to them). Now, especially on a Friday afternoon, or when they think the stock will gap the next morning, this will ensure a tick up at the end of the day - a signal for TA readers and other would-be buyers. These people will not get crucified on their market order, it will simply get executed at the ask, because there is no real volume to create a runaway ask. I hope this is of some help. Charger