Specialist manipulation

Scalper007 · Nov 2, 2006

Quote from RiceRocket:

Your problem isn't the NYSE it's mastercard. The stock is too thin. If you want to day trade without huge spreads you have to trade a stock with some high average daily volume preferrable 25-50 million shares daily. Secondly preferrably under 50 dollars a share.

I have been trading MA for about 3-4 months now. It was not this crazy before becoming hybrid. I made a lot of money in the stock in the past. Now its just impossible. Every time I get in, it drops 80 cents and I end up holding it and when it comes back to even, I sell it and it goes $2 higher... The same exact thing happened the past 3 days... What a coincidence..

stock777 · Nov 2, 2006

Hey if its that easy to lose money in MA, just do the opposite and make the money instead.

No need to thank me.

stock777 · Nov 2, 2006

Hey Ricerocket, thats a mighty strict criteria, 25 to 50 million. You must trade 2 stocks.

stock777 · Nov 2, 2006

Whats this about the spec crossing under the ECN's . What happens to those higher bidders? Do they get filled at the lower price or what.

MR.NBBO · Nov 2, 2006

Quote from stock777:

Whats this about the spec crossing under the ECN's . What happens to those higher bidders? Do they get filled at the lower price or what.

NYSE simply prints thru them (the ECNs), they get nothing unless someone matches them on the ECN. That said, there are those on DOT who get the NYSE print thru, and instantly hit the ECNs for a quick buck. Everything on DOT/or the floor that is below the inside quote gets the print.

My favorite part of this, is that ARCA gets printed thru all day on DOT & the floor by the spec. Seems like NYSE shouldn't be able to print thru their own platform. Strange new world.

Scalper007 · Nov 2, 2006

Quote from stock777:

Whats this about the spec crossing under the ECN's . What happens to those higher bidders? Do they get filled at the lower price or what.

It happens so fast that I don't even know what happened to the ecn high bids. They just disappear in a flash as soon as they see this guy spread down 40 cents...And Yes, the higher bidders on the book get cleaned up at the lower price...

TMcKenna · Nov 2, 2006

Quote from Scalper007:

I have been trading MA for about 3-4 months now. It was not this crazy before becoming hybrid. I made a lot of money in the stock in the past. Now its just impossible. Every time I get in, it drops 80 cents and I end up holding it and when it comes back to even, I sell it and it goes $2 higher... The same exact thing happened the past 3 days... What a coincidence..

Why do you have to "get in" at all? The stock ranges 2-4 dollars per session, you put your limit buy order 80cents lower and sell order 2 dollars higher. I have never..ever bought a stock at market, the specialist is offering a bullshit, every time you look at the market price. Let the market come to your price, you should be a specialist!
If you set 30-50 traps like this for every trading session I guarantee you can get at least 5 fish in your net almost every time. Buying "market" (what specialist wants you to buy) is pure gamble because you don't know what he knows, and he knows what you know, as simple as that.

stock777 · Nov 2, 2006

lol, we have some funny posts here.

The spec is bidding and offering 1 cent apart but somehow, both prices are bs, not to be taken or hit.

Could be.

TMcKenna · Nov 3, 2006

Quote from stock777:

lol, we have some funny posts here.

The spec is bidding and offering 1 cent apart but somehow, both prices are bs, not to be taken or hit.

Could be.

I am glad you are laughing, better than cursing me

Yes, both prices are bs, my limit buy is always below his and my sell always above, what can I do? I am a dumb trader

e-miNY · Nov 3, 2006

Quote from Don Bright:

FWIW, we teach our new traders that "price goes to size" - big offers are often only put up if the seller is pretty sure there are plenty of buyers. The old adage "no buyers at the bottom, and no sellers at the top" tends to ring true. If I'm long, and all market conditions being equal, I like to see a bigger offer....and watch all the newbies sell a penny below the offer, have the buyer take the penny better stock and all the offer, leaving those penny shorts to chase the stock up a nickel or dime to cover.

A specialist won't show a false "gigantic ask" for many reasons, mostly regulatory.

Don

Hey Don, do you agree with the statement that an offer (at least a big one) is 99% bluff? Would a professional seller who thinks prices will go down be offering? Wouldnt they just hit the bid? The reason they are offering is because 1) they are not a aggressive seller (maybe they have already put on half the position). 2) they want to buy it - they bluff some newbie into offering in front of them so they have some supply to buy from.

Is there any more reasons for a big offer?