ã 2005-2006 ThePennyStockBlog.com. All rights reserved.
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.
Remeber this is a theory put forth by a lot of penny stock traders. This is not a guaranteed trading method so please use common sense and purchase stocks only after researching your investment thoroughly.
