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MARKET MAKER SIGNALS
Penny traders believe that Market Makers (MM) will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are such a small amount of shares (worth no more than 5 or 10 dollars) that no trader would have paid a commission that costs more than the amount of shares bought. The "signals" are from one MM to another.
- 100 I need shares.
- 200 I need shares badly,but do not take the stock down.
- 300 Take the price down so I can load shares
- 400 Keep trading it sideways.
- 500 Gap the stock. This gap can be either up or down, depending on the direction of the 500 signal.
Market Maker Signals:
Each penny trader has to decide for themselves whether these signals actually exist. With cell phones, texting, and instant messaging readily available, are these signals real.
I know great penny stock traders who swear by the signals, I also know those who don't find the signals useful. On more than one occasion while trading I have seen the signals, discussed the signal with other traders and watched the stock rise quickly. Whether it was the signals in use or a self fulfilling prophecy we'll never know. Below are the signals.
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