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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (6963)	4/12/1999 3:16:00 PM
From: BradC	Read Replies (1) \| Respond to of 12617

I hardly think a stock that shoots from $1 to $10 and back to $1 all within 5 or 10 minutes is an ordinary stock. I would define thinly traded as a stock with very little daily trading activity and light volume. Some of those fasttrades stocks have very few (if any) trades on the day until it gets hit by fasttrades. The insiders are probably smart enough to load up in the preceding days. But the heart of the matter is the 'market order'. If a stock that trades a 100 shares a day suddenly gets hit by a wave of market orders in the tens or hundreds of thousands of shares what is the ethical thing for a market maker to do? Just keep filling a 100 shares at a time and cranking up the price until they run the stock into the $100's then when they are done let it go back to a $1? I am all for the free market but it is this kind of nonsense that is going to attract the attention of the regulators and make it a less free world for the rest of us. In the futures market they set limits on how much a contract can move in a day. There is probably a good reason for those rules and there may come a day when something like that may be introduced for the stock market as well. I hope it doesn't get to that.