so how do you make a profit in spite of market maker manipulation? here are some pointers for how to profit, while at the same time screwing the hell out of the market makers, shorters, and brokers...
- never give a sucker an even break. your broker "loans" your shares out to market makers who in turn use those shares to naked short the stock you're in, driving the price down. you can prevent this. simply put a limit sell order in at a price you like- brokers CANNOT loan out your shares once you do this. this screws them and the mm's.
- if you see lots of buys going through but the pps (price per share) is not going up, it means the mm's are naked shorting the stock. get out now! don't go back in until you see the price reacting normally to buy/sell volume.
- stocks that you're considering that have high buy volumes but little northbound price change are highly suspect! don't buy them! before making any trade, check the naked short list here. this tells you how long the stock has had FTD's (fails to deliver). rule of thumb: any stock on this list is suspect.
- sitting ducks get shot. keep your trades very brief. long-term trading may look good to you now (even in blue chips), but when the crap hits the fan you'll be glad you followed this advice. never stay in any trade longer than a couple days. you can always go back in on a price opportunity. keep the suckers guessing!
- stocks getting a LOT of forum attention are sure targets for mm manipulation. this applies also to blue chips where there are no mm's but there are huge institutional traders who will manipulate the hell out of the pps. avoid them like the plague. find your own dang stocks!
well, these tips should keep you busy 'til the next installment of this mad blog. meanwhile, if you haven't found a source to learn quant, here's my tutorial.
next blog, we'll talk about- uhhh- something important...
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