Dump it Here

[Skate]

On the ASX, we're talking small groups with very deep pockets, yes?

No !

We are talking about the 'Market Makers'
Market Makers make the market you & everyone else trades in, they make the liquidity when there isn't any.

Anyway to think about this.
The share market is a business constructed by 'Market Makers' they make it possible for others to set a fair price for stocks, commodities, currency exchange etc..

Not out of fresh air
The 'Market' didn't spring up out of fresh air, something/someone/some business/some organisation, created the market, 'Those that make the markets are called "Market Makers"

Very complex subject
It's an interesting subject for most to understand & a few words from me won't let you fully comprehend a very complex organism.

I could write pages & pages on this stuff & most would still have trouble grasping & understanding the complexities.

They create the industry
Market Makers are there to create an industry & make money for the organisation, they don't do all this for free. Trading is a Zero Sum game & you must understand they need to be paid, they do it by manipulating the market & skim away, most don't understand or feel it happening.

Skate.

 

[Gringotts Bank]

No !

We are talking about the 'Market Makers'
Market Makers make the market you & everyone else trades in, they make the liquidity when there isn't any.

Anyway to think about this.
The share market is a business constructed by 'Market Makers' they make it possible for others to set a fair price for stocks, commodities, currency exchange etc..

Not out of fresh air
The 'Market' didn't spring up out of fresh air, something/someone/some business/some organisation, created the market, 'Those that make the markets are called "Market Makers"

Very complex subject
It's an interesting subject for most to understand & a few words from me won't let you fully comprehend a very complex organism.

I could write pages & pages on this stuff & most would still have trouble grasping & understanding the complexities.

They create the industry
Market Makers are there to create an industry & make money for the organisation, they don't do all this for free. Trading is a Zero Sum game & you must understand they need to be paid, they do it by manipulating the market & skim away, most don't understand or feel it happening.

Skate.

Banks and brokers then? They push a price down in order to accumulate, then let the brakes off to capture some profit. Are we talking about Wyckoff's "composite man"?

 

[Skate]

Banks and brokers then? They push a price down in order to accumulate, then let the brakes off to capture some profit. Are we talking about Wyckoff's "composite man"?

No !

The Banks are banks, they are also brokers, they are traders like you & me (only they have much more information than us, they trade against us)

Each market has to be created, making sure it kicks off with liquidity a market just doesn't happen by itself - it first has to be made, its made by the 'Market Makers'

"Making a market" means a willingness to buy and sell the securities of a defined set of companies to broker-dealer firms that are member firms of that exchange. Each market maker displays buy and sell quotations for a guaranteed number of shares.

A "Market Maker" or "Liquidity Provider" quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn.

I hope this helps.

Skate.

 

[Gringotts Bank]

No !

The Banks are banks, they are also brokers, they are traders like you & me (only they have much more information than us, they trade against us)

Each market has to be created, making sure it kicks off with liquidity a market just doesn't happen by itself - it first has to be made, its made by the 'Market Makers'

"Making a market" means a willingness to buy and sell the securities of a defined set of companies to broker-dealer firms that are member firms of that exchange. Each market maker displays buy and sell quotations for a guaranteed number of shares.

A "Market Maker" or "Liquidity Provider" quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn.

I hope this helps.

Skate.

What I mean is, a division of a bank or brokerage firm. Like IG for example.

 

[tech/a]

No !

We are talking about the 'Market Makers'
Market Makers make the market you & everyone else trades in, they make the liquidity when there isn't any.

Anyway to think about this.
The share market is a business constructed by 'Market Makers' they make it possible for others to set a fair price for stocks, commodities, currency exchange etc..

Not out of fresh air
The 'Market' didn't spring up out of fresh air, something/someone/some business/some organisation, created the market, 'Those that make the markets are called "Market Makers"

Very complex subject
It's an interesting subject for most to understand & a few words from me won't let you fully comprehend a very complex organism.

I could write pages & pages on this stuff & most would still have trouble grasping & understanding the complexities.

They create the industry
Market Makers are there to create an industry & make money for the organisation, they don't do all this for free. Trading is a Zero Sum game & you must understand they need to be paid, they do it by manipulating the market & skim away, most don't understand or feel it happening.

Skate.

The share market has its own book makers.

You didn't happen to know Joe Liddy did you Skate?

 

[Skate]

The share market has its own book makers.

You didn't happen to know Joe Liddy did you Skate?

Sorry no.

I'm going to have lunch, I've just worked out how to answer to @Gringotts Bank question in three line that most will understand.

Skate.

 

[Joules MM1]

it should be made clear there is a vast difference between providing and being paid to bring liquidity to the auction (both sell side liquidity and buy side liquidity) and an open driving trend

these are vastly difference aspects and constructs and newbies should learn them....eventually....but market makers cannot control trend, trends otustretch

that does not imply that liquidity providers cannot press weak late commers into self-spyched into buying what those players are trying to off-load, sure, that's true, but it requires a small frame work to work in which is not the same as trend, although, having said that, we're now treading into the conversation of what defines a trends.....and my first yawn just hit me (before yours hit you!)

...so here's one i like to bang the table bout - know relative size of a move and context of the move that way you may get a sense of the intent of the players involved with price at the place and time you want to do business......

 

[tech/a]

know relative size of a move and context of the move

Worth pulling out.

at the place and time you want to do business

Start and finish.

 

[Gringotts Bank]

A 40 minute lunch. Might have made a good stockbroker back in the 80s.

 

[Skate]

What I mean is, a division of a bank or brokerage firm. Like IG for example.

This is the premise of all businesses

1. Manufacturer
2. Wholesaler
3. Retailer
4. Customer

If the wholesaler get stuck with stock from the manufacturer that won't move, the manufacturer give a guarantee (a condition of sale) that they will buy back stock that won't sell.

The manufacturer will take back the stock (but there is a restocking fee) attached, so the manufacturer still makes money on the deal & keep the wholesaler happy (the guarantee from the manufacturer minimizes the Wholesalers risk )

The stock sitting in the manufacturer's warehouse is not making any money for him so he creates interest again in his product once he has a good amount of stock to sell back again & once the interest picks up he sells back his stock to the wholesaler who sells it to the retailer, who on sells it to the customer. (its a rotational system)

NOW

1. Manufacturer (Market Maker)
2. Wholesaler (Brokers)
3. Retailer (Banks acting as a broker, also there are full service brokers)
4. Customer (trader)

When the market stalls, meaning 'no liquidity' in the market, the Market Maker makes the liquidity by buying on the other side of the trade buying at wholesale prices, remembering traders brought at retail prices (high price) & sell back at wholesale price, (low price) that why traders lose money.

The Market Maker buys back the stock cheaply going about filling his cupboard. The Market Maker is still selling FEAR by causing the fear they manipulation the stock lower price because he is in accumulation phase.

The the Market Maker will create activity by selling GREED manipulation the price higher, creating interest so he can dump back his shares into the market at Retail Prices.(its a rotational system)

The stock is repackaged & resold.

Market Makers - buy lower sell higher
Traders - Buy higher sell lower

Skate

 

[Gringotts Bank]

This is the premise of all businesses

1. Manufacturer
2. Wholesaler
3. Retailer
4. Customer

If the wholesaler get stuck with stock from the manufacturer that won't move, the manufacturer give a guarantee (a condition of sale) that they will buy back stock that won't sell.

The manufacturer will take back the stock (but there is a restocking fee) attached, so the manufacturer still makes money on the deal & keep the wholesaler happy (the guarantee from the manufacturer minimizes the Wholesalers risk )

The stock sitting in the manufacturer's warehouse is not making any money for him so he creates interest again in his product once he has a good amount of stock to sell back again & once the interest picks up he sells back his stock to the wholesaler who sells it to the retailer, who on sells it to the customer. (its a rotational system)

NOW

1. Manufacturer (Market Maker)
2. Wholesaler (Brokers)
3. Retailer (Banks acting as a broker, also there are full service brokers)
4. Customer (trader)

When the market stalls, meaning 'no liquidity' in the market, the Market Maker makes the liquidity by buying on the other side of the trade buying at wholesale prices, remembering traders brought at retail prices (high price) & sell back at wholesale price, (low price) that why traders lose money.

The Market Maker buys back the stock cheaply going about filling his cupboard. The Market Maker is still selling FEAR by causing the fear they manipulation the stock lower price because he is in accumulation phase.

The the Market Maker will create activity by selling GREED manipulation the price higher, creating interest so he can dump back his shares into the market at Retail Prices.(its a rotational system)

The stock is repackaged & resold.

Market Makers - buy lower sell higher
Traders - Buy higher sell lower

Skate

Thanks for taking the time to explain that. So the MMs have a direct line to the media, yes? Or it's all done through selling pressure?

 

[Skate]

So the MMs have a direct line to the media, yes? Or it's all done through selling pressure?

The Market Maker manipulate everyone (the media is their football, the media screams for news every day - the Market Makers supply the news to them that set the perception)

Formula (supplied in a previous post) its called "conditioning"
Perception = Reaction

Meaning, you set up the perception to get the reaction you want (this is how I made most of my wealth)

They infiltrate
They infiltrate forums, they infiltrate financial news sites, they infiltrate the Banks, they infiltrate everything for their own benefit.

Think about this
Where do you think all the trading news stories come from ?
It comes from a source - who do you think is the source ?
Journalists do make stuff up but that involves effort, they would rather copy & paste a story that's been written for them. They don't even care if the story is factual. (inaccurate stories are worth gold to the media as it creates three more stories & the media business model is stories that earns them money, stories are what they are after & crave)

Skate.

 

[Skate]

I'll be giving away 10 Free eBooks

Members who have 'liked' any of my posts a 'copy' has been earmarked for you.

Skate

 

[peter2]

I'm so glad you included the media in your discussions. Everybody likes to know why a price moves, even if the reasons are complete fabrications (fake news).

 

[Skate]

i also suggest, with respect, you begin to index these posts so you can refer back and go indepth, build a chronology, an index, a pathway if you like

build an initial master index for yourself with http's set for each subject that way you'll have a chain to work from, making a comprehensive pathway for a complete newbie

@Joules MM1, I've created an eBook & posted a link if you are interested in a copy. It was much easier to reformat the posts & place them in a book form.

Thanks for the idea.

Skate.

 

[barney]

..... and my first yawn just hit me (before yours hit you!)

Lol ….. You are a funny man Joules

 

[Gringotts Bank]

Skate, can you show us a few more of your chart trades please?

 

[Skate]

Skate, can you show us a few more of your chart trades please?

I walk the boardwalk every afternoon for an hour around this time (what charts are you after ?)

Have you a security in mind ?

Skate.

 

[Gringotts Bank]

I walk the boardwalk every afternoon for an hour around this time (what charts are you after ?)

Have you a security in mind ?

Skate.

Just anything that you'd consider a good example of your approach. Thanks.

 

[Skate]

Just anything that you'd consider a good example of your approach. Thanks.

This was a nice winner - I'll post up a bad loser next

Skate.