Market Maker Tricks

I was a market maker for 8 years with the second biggest MM on the street. I can assure you there are no tricks that would affect a day/ trend/ scalp trader. Also no MM can see your account, that would be a conflict and unethical.I have been day/trend trading for the last two years and although I use my MM experience as a learning tool, I have no advantage over any other day trader.
 
froggie... those consipracy theories are not only wrong but also a sign of a mindset quite harmful for one's trading... IMO
 
Quote from jztrading:

I was a market maker for 8 years with the second biggest MM on the street. I can assure you there are no tricks that would affect a day/ trend/ scalp trader. Also no MM can see your account, that would be a conflict and unethical.I have been day/trend trading for the last two years and although I use my MM experience as a learning tool, I have no advantage over any other day trader.
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Uh huh. Mmmmm. Wellllllll.


I guess all the flushing was / is being done by some other entity. Less of it these days, prob because there are less traders likely to be suckered.


Reminds me of the online gamers that cheat. You know they cheat, you see them cheat, and if you ask them if they cheat, they tell you no, you have to PRACTICE more.

Yee Hah.

P.S. I guess you never heard of Knight Trading and all the fines they paid. Probably too small to have crossed your path.

P.P.S Your;e in luck , just ran across this:

http://nitetradinggroup.com/
 
Quote from froggie:

Thank You Dvshucks. This is a great link. Very, very useful to see MM activity. I have a question: Is it true that if a retail trader bought 3000 to 20,000 shares of any stock, MMs will prevent the stock from going in the trader's intended direction? From experience, I have noticed that if I buy 5000+ shares, there apears to be a cap on the stock which holds the stock down until I get rid of the shares. As soon as I sell my large lot, it goes and hits my target. ANy ideas will be appreciated.
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Froggie, I honestly don't mean any disrespect by this, but no one gives a sh-t about your 5000+ shares, its all in your head. The sooner you realize this the better.

You notice this because, and I am guessing but, this is probably a big position for you, your blood vessels constrict, your heart beats faster, you start to sweat a little, the minutes just drag by, you lose your nerve, blow out your position and watch the market trade to your profit objective.

These might not be the feelings you feel but you should identify the feelings and the physical reaction you have to this large of position and experience them more in a safer place than when your money is on the line. I honestly believe that if you are able to identify these feelings and allow your self to experience them your trading will improve noticably.

5yr
 
To STOCK777: What you described is not a MM trick, its manipulation. MM,s used to have big buy order pre-open, push the stock up, then sell their order only to bring the stock(they r short) back down.Those days are gone and since order display and manning its difficult for MM,s to (hide) things, you and I have better access to REAL MARKET, there is much more transparency now than there ever was. Good Luck .
 
You said there were no tricks, and yet you describe one. And they did this all day, and intrady. Less now , but why deny that all kinds of games were played?
 
when people think of an MM manipulating the stock they probably think he is seeing your order and trading agaisnt it.... (although they trade against large institutional flows)

this is not what i think happens... ive often thought about all those orders i see on the tape on liquid stocks... the majority of it is garbage. only very few prints are meaningful...

however there is someone that is buying or selling big. if u are keen to notice it you can make an informed bet.
 
I have nothing to hide or deny. I just explained to you a form of market manipulation that some MM,s used in the 90,s.These are not tricks, it doesnt take a sharp person(or trickster) to do those things described and if you did,nt trade the opening this would'nt affect you. Also if you follow certain moves you can see what the MM is doing, its not hard, its not a trick. Again, Good Luck Trading.:)
 
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