Market Maker Manipulation

Discussion in 'Trading' started by Norm, Aug 30, 2005.

  1. Norm


    Many of us believe that market makers routinely manipulate markets or play tricks that cost us money. Can anyone elaborate on the tactics that market makers use?
  2. opening orders.

    The idea is that the specialist (listed mainly, since NASDAQ done by supermontage) has a net buy or sell imbalance on the opening.

    It is in their best interest to open the stock at an artifically and unsustainable price to it reverts back to regular supply and demand levels dictate. They then cover their position for a prift after printing all the customers at the opeining print.
  3. You just have to learn how to play along with them. I enjoy the tricks bc most people fall for them all the time while the trained eye takes advantage too.

  4. If the opening priec is the best 'trick' you can come up with , you ain't paying attention.

    The best MM's are all ex three card monte men .