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Posted On: 08/10/2017 1:01:25 AM
Post# of 72443
URGENT: do NOT put stops in on this stock. Low-volume stocks like this are easily taken down so that your stops are hit, then the stock goes back up.
The market makers have order books that show every single stop order.
This is NOT urban legend or paranoia that stops get run. Typically, there is a fast take-down, possibly on very small trades. Then, the sucker's stop is taken out. As soon as all stops are run, the stock goes up.
I witnessed this on DNDN the day it opened at triple the previous day's close.
It closed the previous day at 7, opened the next day at 21. Unbelievably, in the early afternoon (right before people would get margin calls on their short positions), the stock plunged down to 7, then back up over 21, in less than 2 minutes.
The market makers helped out some good customer who was in trouble. Ran the stock down, he got to cover on the back of someone's stopped- out position, and then they let the stock go right back up.
Don't be the sucker who loses the stock on BS market maker moves.
DO NOT USE STOPS ON IPIX.
The market makers have order books that show every single stop order.
This is NOT urban legend or paranoia that stops get run. Typically, there is a fast take-down, possibly on very small trades. Then, the sucker's stop is taken out. As soon as all stops are run, the stock goes up.
I witnessed this on DNDN the day it opened at triple the previous day's close.
It closed the previous day at 7, opened the next day at 21. Unbelievably, in the early afternoon (right before people would get margin calls on their short positions), the stock plunged down to 7, then back up over 21, in less than 2 minutes.
The market makers helped out some good customer who was in trouble. Ran the stock down, he got to cover on the back of someone's stopped- out position, and then they let the stock go right back up.
Don't be the sucker who loses the stock on BS market maker moves.
DO NOT USE STOPS ON IPIX.
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