Saturday, November 28, 2015

What is a good opening position size?


OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot


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What is a good opening position size?
                      Credit to Sooah Moon @bb2stocks

When we want to take a position on a new trade, we don't let others see us coming. Therefore, we do not talk when we load (meaning, we do not post boards) and don't load big all at once because big loads trigger big volume and sets off sirens. It will mess up our load plan.

When we load or open a position, we "tap" it or do it in increments.

TAPPING ON STOCKS PRICED BETWEEN 1c - 5c

On stocks 1c - 5c, I like to use 25,000 share taps. Those coming from other groups, this is what the 25,000 share bid rule means--it applies to this particular price range of stock.

No matter how much you like the stock, you have to bid in INCREMENTS and see how the price/volume action reacts! Hence, you bid 25,000 or can even buy ask for 25,000 if the price is still WITHIN the channel or inside the bollies.

Then, if the price/volume reacts positively, you add another 25,000. Even if the price declines slightly from your buy-in BUT still stays inside the consolidation range, it is OK to add.

TAPPING ON STOCKS PRICED BETWEEN 001 - 01

 For this price range, I like to use 100K to 250K share taps, keeping in mind total volume. Your opening position is ALWAYS relative to volume traded so if the volume is weak, you want to tap lower increments.

TAPPING ON STOCKS PRICED BETWEEN 0.0001 - 0.001 

For this price range, I religiously follow 1.5% of total volume since confirmed bottom reversal as my MAXIMUM opening position. If you're not careful, stocks in this price range can cause you to lose the most amount of money because people have the tendency to over-buy a position here. If you buy 20MM shares, be prepared to hold the bag and don't be surprised that you and others who bought a ridiculously dangerous amount are the ones clogging up offers!

Keep your position relative to volume traded and small/big enough so that you can exit if the trade failed.

TAP, TAP, TAP.

Wrestle [df] 
1. to compete
2. to force
3. to throw
4. to master (contend)

OTC pigs are dangerous animals, first and foremost because they are so cheap. Stocks that are cheap are cheap for a reason. A typical newbie mentality is to "throw" some money at her. As matter of fact, throw a ton of money at it and see if I can make her "fly" all by myself because I have the money. Well, "Pigs don't fly" and you by yourself--no matter how much money you throw at her--cannot make her a different animal.

When one keeps throwing money at a pig, you are doing what we call FORCING A TRADE and if not careful, you will find yourself wrestling with a pig.
========================================================
1. We wait for a trade to come to US - we don't chase pigs. We wait for the conditions to be met (pattern, intensity/direction...etc. - the 5) and improve our chance of winning.
2. We don't and can't go to every trade - there are many, many pigs so don't cry over a play you're not in
3. It is OK to miss a trade than to make a bad trade - if you don't see the % gain you want, PASS
4. It is OK to miss the bottom (entry) and also the top (exit) on a trade

Change your thinking, correct mistakes and the rest ($$) will come.


Welcome to Chedsblog!   
-Helping new traders avoid my old mistakes-

OTCBB Pennystock trading article topics include:
Reading financials and filings
Market makers 
L2 and chart analysis
Understanding the competition
Using social media to trade
Price and volume study
Bankroll management
Game theory
Sub .01 low float setups
Interviews with influence makers
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    at 4 comments:

    CEO and CFO responsibilities to shareholders


    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings
    Market makers 
    L2 and chart analysis
    Understanding the competition
    Using social media to trade
    Price and volume study
    Bankroll management
    Game theory
    Sub .01 low float setups
    Interviews with influence makers

    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot


    CEO and CFO responsibilities to shareholders:   
                       Credit to IHUB: Mainesbest

    CEO's and CFO's of public companies are subject to several Federal requirements whereby they are on record certifying the accuracy of their SEC filings. The objective of these requirements is for greater transparency and hence investor confidence which is becoming of  a greater priority and focus with regulatory and enforcement agency's in light of past and current accounting scandals. 

    One of these requirements is contained in Section 906 of the Sarbanes-Oxley Act, which President Bush signed into law which requires CEO's and CFO's of all public companies -- not just the largest ones -- to certify the accuracy of all periodic reports (on Form 10-Q or Form 10-K) that they file. Further, the company officer (most of the time it is the CEO) must certify not just the accuracy of the 
    information in the report, but also ascertain that the report complies with SEC reporting requirements. These certifications are not just limited to the financial statements in the filings. The certifications apply to ALL disclosures in the documents filed, regardless of the level of importance. Finally the SEC rules require that the executive certify that the financial statements "fairly present in all material respects the financial condition and results of the operations of the issuer." This goes beyond a mere statement that the financials comply with GAAP-SEC rules and regulations. 

    ALL reports filed with the SEC are subject to SEC review and comment and, in fact, the Sarbanes-Oxley Act requires the SEC undertake some level of review of every reporting company at least once every three years. If the previously-issued financial statements are materially misstated, they have to be corrected promptly. A material misstatement does not automatically equate with criminal intent to defraud. 

    However, the amendment does raise the question as to what prompted this matter and corresponding amendment-delay. One does not require a CPA license or a law degree to know that the subject of embedded conversions and their corresponding valuations is an area of concern that has found its way under the microscope and watchful eye of SEC and as well The Division of Enforcement, Chief 

    Accountant's Office (ENF-OCA) which is a division of The Office of the Chief Accountant (OCA). It is the responsibility of the ENF-OCA, under the Securities Act of 1933 and the Securities Exchange Act of 1934, to monitor and enhance compliance with the applicable disclosure and accounting requirements. In its filing reviews, the Division concentrates its resources on critical disclosures that 
    appear to conflict with Commission rules or the applicable accounting standards and on disclosures that appear to be materially deficient in transparency, explanation and clarity.

    Further CEO's are not new to this subject and the SEC knows that companies seek out CPA's that will accommodate their unlawful reporting agendas. As a result of this practice and the adverse financial effects to the public came the enactment in 2002 of the Sarbanes-Oxley Act and later the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203. These helped usher in a data analysis program known as the aberrational performance inquiry, or API. Today the SEC uses a software known as Market  Information Data Analytics System (Midas). The SEC began phasing this software in a few years back and such is applicable to to analyzing performance and filing results from every company, firm, and fund traded in the United States.



    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings
    Market makers 
    L2 and chart analysis
    Understanding the competition
    Using social media to trade
    Price and volume study
    Bankroll management
    Game theory
    Sub .01 low float setups
    Interviews with influence makers

    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot
    at 13 comments:

    Sunday, November 22, 2015

    Break the habit! Stop averaging down on that POS, and other trading mistakes


    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot


    Bitcoin Live is now offering a monthly and quarterly option!









    Finally a project I can get behind. I am honored to be a founding analyst for Bitcion Live. Why should you join? Watch my webinar here:
    https://www.youtube.com/watch?v=fhm3ihm2UD0


    POOR HABIT TO BREAK #1: STOP AVERAGING DOWN!
                                                        Credit to Sooah Moon @bb2stocks

    When you find yourself constantly average down on a stock, there is something seriously wrong. Aside from the obvious Dilution which you have no control over, "averaging down" over and over again on the same stock usually means three things:

    ...
    1. The main trend line of the stock is DOWN -- there is no bottom in sight (you've heard this expression)

    2. Every one of your prior entry was wrong, meaning you failed to confirm bottom reversal prior to entry -OR- you entered at a price point that has no meaning on the chart, the channel or Fib points...

    3. You failed to exit immediately after making those poor entries

    If your entry and exit are correct, there is no need to average down. Averaging down is different from "buying dips" on an opening position.

    You don't keep averaging down EVER on a stock that has a main trend line that is nothing but DOWN for by the time when the stock hits a point of near zero recovery, you will own more shares than any one is willing to buy.
    There are three main things we evaluate:

    1. Pattern or Trend (we have to make sure there is a prior trend to be broken and that trend has to be broken for us to make an entry)
    2. Intensity - how strong is the movement (technical indicators/studies for this to be covered in another thread)
    3. Direction - what is the direction of the movement ( "  ")

    Then, we look at entry and exit points. We do not make an entry before performing the 3 above and same applies to exit!

    Next time you get stuck in a stock at the very top of the pps, learn to exit immediately and minimize your losses instead of averaging down. The proper way to average down--if you had to--on an "investment gone wrong" is to TRADE minor trends for a profit and to make sure you exit unharmed when you close out the entire position.


    HOW TO AVOID BUYING OTC PIGS AT THE TOP

                                Credit to Sooah Moon @bbs2stocks

    We discussed in various rooms that there is no need to do a full blown DD on any OTC pig because it's same crap, different pig. On OTC pigs, we basically "play the play" and "play the chart." However, it is utterly foolish not to do any sort of fundamental DD even on a pig.

    Some basics you have to check to avoid buying the top are:
    1. Share Structure (A/S, O/S, Float)
    2. Capitalization (Look at Statement of Shareholder Equity)
    3. Derivative liability in the balance sheet

    It takes about 30 minutes to scour the filings to check the above.

    On $DROP as an example, you'd see that the issuer issued a very small number of common stock by applying a great portion of investor's initial funding to additional paid in capital which gave the illusion that the value of the company or shareholder equity was much higher than in actuality. This points to how management chose to treat capitalization together with their initial investors. $DROP decided to issue almost no shares while $MTVX chose to issue 20B shares from the get go. These extremes "too much or too little" are RED FLAGS. These finite details are key to understanding how your 'investment' in OTC stocks might faire.

    Based on this type of trick, the company also issued convertible notes with a conversion price of $4.00 per share and later at 0.02 but with a clause that stated 60% discount to the lowest average...etc. There is ambiguity in the language of the convertible note agreement. This is done for a reason--these are all tricks. The SEC does not get involved in Rule 144 offering disputes between lenders and issuers so the word "and" is subject to interpretation. This is where attorneys come in to write legal opinion letters to clear stock certificates.

    Derivative liability (D/L): These have to be marked at fair value hence as the stock price moves down, D/L increases in the Balance Sheet because they have an inverse relationship. Before you know it, you'll see D/L blowing up like a pig without a company taking on additional debt. The reason is that D/Ls are a function of share price. D/L increases as the stock price moves below its par value. When stock is issued below par value, a charge called "accretion cost" must be booked on the P/L side and the credit side is the D/L...

    So on $650K worth of convertible debt, legacy lenders could be entitled to up to 1 billion shares on something like $DROP and they will wait until they can get the most amount of shares. This is the name of the game in OTC land.


    POOR HABIT TO BREAK #3: DON'T HOLD TOO LONG!

                                              Credit to Sooah Moon @bb2stocks

    OTC Pigs are not meant to be held, or held long for that matter. They are meant to be traded. The "hold time" for pigs is getting shorter and shorter as the OTC and traders lost big $$ this year from many MMJ SEC shutdown. Everyone is trying to rebuild and preserve capital hence we all must do the same. 

    "Don't Hold Too Long" is another expression for "Don't Get Greedy" and "Don't Be a Sheep"

    1. Don't Get Greedy

    If a 100% gain presents itself to you, TAKE IT and RUN. Yes, you could leave cash on the table but the taming thought here is this: How many and how often do your plays go 100%? If a 100% is the norm for you, please ignore this part but I am willing to bet a big chunk of my life that 100% gains are more rare than the norm. 

    By trying to squeeze another 14% to 32% out of a 100% runner, you could be sacrificing your 100% gainer.

    2. Don't Be a Sheep

    Someone--the most notorious person in all of OTC--told you that stock XYZ is going to da moon so keep holding. If there is a known, forward looking event coming on a stock and it's a week away, sure, it is ok to hold but most of the time, you really should not be holding more than 10 sessions after a buy-in. Forward looking events have to be justifiable, whether they were a guidance given by an issuer or a known formality based on regulatory guidelines. 

    If we have money riding on a stock that has been basing for more than 7 sessions, we really have to keep a close eye on it (Bollies squeezing) because the price can correct in either direction...and when news finally hits, it might not be the one that we were looking for. 



    KEEP YOUR LOSSES MANAGEABLE Credit Sooah Moon @BB2Stocks


    If you aren't consistently meeting your daily or weekly goals, go back and re read this article from the beginning.


    What you should focus on is the SIZE of your opening position relative to VOLUME and setting a working EXIT strategy.  "Entering a play and only planning on where to take profit is a mistake, plan your exit strategy as well if things go south."

    If your "buy-in" is too big relative to volume traded, your exit becomes challenged as you're met with competition as you try to exit With diminishing price and volume, you're almost guaranteed to be a bag-holder, so PLEASE do not over buy a position no matter how much you like the stock. The point to keep is not always about what % gain you could achieve on a play but also what % loss. Keep these in mind, always.

    If you had a loss over $500 on any play this week, your entry was either totally off or you bought too much stock for that play. Even if you got the entry right, you held too long and that could also cost you, so I kindly suggest that you re-visit your personal strategy again and firm it up.

    Learn to exit a bad entry quickly and keep your losses manageable, folks. Your losses for exiting a bad entry should be minimal, and you should even feel good for taking a loss sometimes.



    SUNK COST FALLACY 


    What is "Sunk Cost Fallacy?" Often times on twitter you will see me interacting with someone who is holding on to a stock or coin they should have sold a long time ago, and I tell them to google this phrase - 





    I don't know about you but I have been in the situation many times where I was down on a stock/coin, and whenever I had new funds I kept "averaging down". I figured that since I already had my money in and thought it had to bounce eventually, I might as well make my money back in that play. Right?  WRONG

    You should be thinking about your funds very carefully and protecting them, throwing good money after bad money is a big mistake and an easy one to make. I lost over $250,000 doing this in one OTC play.

    The lesson? Cut your losses quick, especially if it is a loser. Move on and use your funds for a play that is not locked into a downtrend.




    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings

    Market makers 

    L2 and chart analysis

    Understanding the competition

    Using social media to trade

    Price and volume study
    Bankroll management
    Game theory
    Sub .01 low float setups
    Interviews with influence makers

    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot

    at 6 comments:

    Thursday, November 12, 2015

    Divergences, Bullish and Bearish


    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings

    Market makers 
    L2 and chart analysis
    Understanding the competition
    Using social media to trade
    Price and volume study
    Bankroll management
    Game theory
    Sub .01 low float setups
    Interviews with influence makers

    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot



    Bitcoin Live is now offering a monthly and quarterly option!









    Finally a project I can get behind. I am honored to be a founding analyst for Bitcion Live. Why should you join? Watch my webinar here:
    https://www.youtube.com/watch?v=fhm3ihm2UD0


    What do bullish and bearish divergence mean?




    Bullish and Bearish Divergence:
    https://www.youtube.com/watch?v=D0GWCi8ViYs

    Article on Divergences, Momentum and Rate of change:
    http://www.investopedia.com/articles/trading/04/012804.asp

    Cheds Breakdown:

    Divergences are signals that a trend may be reversing. When you see some key indicators rising, such as money flow and accumulation with price falling, this is a good clue that the bottom is near.

    Learn to spot them and use them as one of your key decision factors.


    Example 1)
    http://investorshub.advfn.com/boards/read_msg.aspx?message_id=127056259



    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings

    Market makers 
    L2 and chart analysis
    Understanding the competition
    Using social media to trade
    Price and volume study
    Bankroll management
    Game theory
    Sub .01 low float setups
    Interviews with influence makers

    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot
    at 2 comments:

    Review of "OTC View" Promotion and Newsletter Tracking Analytics Platform- @OTCDynamics


    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings
    Market makers 
    L2 and chart analysis
    Understanding the competition
    Using social media to trade
    Price and volume study
    Bankroll management
    Game theory
    Sub .01 low float setups
    Interviews with influence makers

    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot
     The following is my review of the three services available from @OTCDynamics and "OTC View"

    OTC Dynamics is a free and premium service tailored for the OTC, and it perfect for those who are into tracking Penny Stock Promotions and Newsletters. The twitter feed is great as a straight news source, and the website and platform have some really great features to help with that promotion and promoter tracking and analysis.


    Click here to sign up for a free trial and browse features
    USE COUPON CODE 'CHEDS' for 25% off!




    The free twitter account is a great follow for a straight news feed:
     Great feed on twitter to follow for news etc etc. give example

    On twitter @OTCDynamics



    The twitter feed is also very useful for tracking penny stock promotions. If you are in a ticker and they have a promotion, its very useful to find out who is behind the promotion, and what their past track record is.

    For example, this pops up :

    Click on the link to find out more information, and it takes you to the website, and shows you some pretty cool metrics.








    The second  component of OTC Dynamics is the website 





    My favorite feature is probably the lists where you can sort through tickers by share structure.









    Another really cool feature is the Stock Promoter Ranking Chart




    Tracking of new promotions





    Click here to sign up for a free trial and browse features
    USE COUPON CODE 'CHEDS' for 25% off!


    The third component is the "OTC View" Trading Platform





    I like how you can study the metrics of the stock promoters, and see their past performance:







    Information on recent newsletter campaigns:



    Other nice features:




    PREMIUM PACKAGES OVERVIEW:


    Package 1  (Website Access) $39/month
    - 7 day free trial (coupon code CHEDS for 25% off)
    - Unlimited website access
    - Stock Promotion Tracking
    - Alerts/Picks from All Stock Promoters
    - End of Day Reports
    - Day Top Gainer Reports

    Package 2 (OTC View Desktop) $89/month
    - 7 day free trial (coupon code CHEDS for 25% off)
    - Unlimited Website Access
    - OTC View Real-time Promotion Trackers
    - Stock Promotion Tracking - Steamed to OTC View
    - Alerts/Picks from All Stock Promoters
    - End of Day Reports
    - Day Top Gainer Reports
    - Stock Promotion Ranking System - Integrated in OTC View
    - Advanced Promotion Statistics









    Click here to sign up for a free trial and browse features

    USE COUPON CODE 'CHEDS' for 25% off!



    Ched's Final Thoughts:

     Summary -- The twitter feed is great, and the website and platform are really good if you are into tracking stock promotions. Best in class

    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings
    Market makers 
    L2 and chart analysis
    Understanding the competition
    Using social media to trade
    Price and volume study
    Bankroll management
    Game theory
    Sub .01 low float setups
    Interviews with influence makers

    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot



    at 9 comments:

    Market Makers - Who are they and how are they different? w/complete list of bad MMs


    Top 5 OTC Trader on twitter - Newbie Helper/Teacher
                                                                        (Updated 8/10/2017)
    Follow me on Twitter: @BigCheds                  Current followers- 8023 (+951)
    Follow me on IHUB: Cheds                             Current marks: 1264 (+248)
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    Bitcoin Live is now offering a monthly and quarterly option!









    Finally a project I can get behind. I am honored to be a founding analyst for Bitcion Live. Why should you join? Watch my webinar here:
    https://www.youtube.com/watch?v=fhm3ihm2UD0

    Welcome to Chedsblog!   
    -Helping new traders avoid my old mistakes-

    OTCBB Pennystock trading article topics include:

    Reading financials and filings

    Market makers 

    L2 and chart analysis

    Understanding the competition

    Using social media to trade

    Price and volume study

    Bankroll management

    Game theory

    Sub .01 low float setups

    Interviews with influence makers
    OTCBB Penny Stocks Trading Market Makers L2 Charts Technical Analysis Financials Learning Discipline Networking Planning Bankroll Management Taking Profit Paper Trading Options Nasdaq NYSE Small Cap Stock Picks Alerts Bashers Growth Pennystock Sub Penny List Stop Loss Top Hot
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    MARKET MAKERS - WHO ARE THEY AND HOW ARE THEY DIFFERENT???



    Who is VFIN? Who is BMAK, Who is VNDM? NITE? CDEL?CSTI?? Now I'm confused



    Market makers, who are they and why do I care?

    Its very important to recognize what the role of each market maker is, this will help you navigate L2 and get a better sense of ebb and flow of the price action. The penny stock market on the OTCBB is ruthless, so its very important to know who you are up against.


    Credit to @BB2Stocks Sooah Moon

    **
    The second most important tool for trading after the CHART is called Level 2 or what some of us refer to as the BOX because it is a supplemental tool that looks like a box. What happens inside the "box" shows on the Chart so you must learn basic charting before you understand or can use L2 properly.

    L2 is good for identifying the following:

    1. Who is buying, at what price and how much
    2. Who is selling, at what price and how much

    1 & 2 identify the competition on both bid and sell side because there certainly is competition (market is competition) to buy and to sell. In general, competition to sell increases or gets more aggressive AS a stock nears a major resistance point while competition to buy increases WHEN a stock finds a solid support/and or bottom. Note the words "AS" and "WHEN" in capital letters. There are other factors that increase/decrease competition to buy/sell which will be added in this thread later when we have specific examples.

    3. Who is selling - retail, dilutor, MM, promoters...etc.
    (this section reserved for much later...)

    4. Real time resistance/exit points
    Your reference for resistance (exit) points is usually the chart, however, L2 also shows real-time resistance during a live trading session. You can see the price point where offers are stacked -- this is your real-time resistance hence you must watch L2 to see if you should exit before that point or if the thickness of that resistance could be overcome. Also check if the real-time resistance is consistent with resistance on the chart. 
    **

    The AX

    The most important market maker to look for is called the AX. This is the market maker that controls the price action in a given  stock. You can find out which market maker this is by watching the level II action for a few days - the market maker who consistently dominates the price action is the ax. The ax isn't always trading the stock in one direction or another. Sometime he is keeping it in a tight range and sometimes he is not there at all and another ax may step forward. Note that there are times where there is no ax present. The point is the AX is the one to watch closer than all other parties or MMs. Many day traders make sure to trade with the ax because it typically results in a higher probability of success. Note that the ax is not static. On any given day any party can be  an ax, there may be one ax in the morning and another in the afternoon. If a big order comes onto the trading desk of a firm that doesn't do big volume in a certain name, the ax will take care of it and command the action. An ax can easily use an ECN to hide much of their action. They can and will use fake outs. Keeping an eye on Level 2 will reveal the ax.


    Recently on my IHUB Board - Cheds is Trading, someone asked me a question about MM's, and here is the conversation.







    Great website with some information on market makers:What are Market Makers?

    Complete list of OTC Market makers:

    http://www.otclistings.com/wp-content/uploads/2009/12/A-Complete-List-Of-Market-Makers-For-OTC-Listings.pdf

    Each market participant is recognized by the four-letter ID that appears on level II quotes. Here are some of the most popular ones:

    NITE, ETRF, CSTI  PUMA MAXM ATDF CANT
    and the ones we all hate to see
    VFIN VNDM BMAK BKRT ARCA ASCM CDEL CFGN

     These 8 are rarely every up to any good. They are the dilutors selling toxic debt to your penny stock , and driving it down to triple zero.

    Once in a while retail does route through VFIN. There have been times when I myself have put in a limit buy order and it was executed by VFIN, and I could move him around on L2

    NITE: This is the king MM of the OTCBB. He intimidates traders and other MMs use that to their advantage knowing that he scares them. (however imo CDEL has become the biggest pain in the ass recently)

    That's why NITE is the shaker on most stock runs; he is the most common ax. NITE could be on the ASK all the time, he could be leading a dip scaring sellers to CSTI and CANT on the bid.

    Electronic Communication Networks (ECN): ARCA, BRUT, BTRD, INCA, INTL, ISLD, REDI

    Big Shorters: JIMK, POND, ASCM, BKRT, GNET or ARCA (anyone can use GNET, even other MMs because it's an ECN).

    Great link to list of MMs


    Investors Underground, some thoughts on common Market Makers:

    How Brokers Can Avoid A Market-Maker's Tricks


    New MAL MM - ARXS
    Link to bio on ARXS


    Top Retail Dilutor: VFIN      Public enemy #1

    OTC Bulletin Board Market Maker List

    ABLE - Natexis Bleichroeder Inc.
    AEXG - Alternative Execution Group (mal)
    ALPS - Alpine Securities Corporation (mal)
    ARCA - Archipelago
    ARXS -   Arxis Capital   (mal)     Information
    ASCM - Ascendant Capital Markets LLC (mal)
    ATDF - Automated Trading Desk Financial Services LLC
    BEST - Bear, Stearns and Co Inc.
    BGCE - BGC Financial Inc
    BMAK - Magna Hannover (mal)
    BMIC - Biltmore International Corpor (mal)
    BKRT - Mercer, Bokert, Buckman & Reid (mal)
    BNKS - Fig Partners, LLC
    BTIG - BTIG LLC (mal)
    CANT - Cantor FItzgerald and Co
    CDEL - CITADEL (mal)
    CFGN - New the VNDM
    CRTC - CRT Capital Group LLC (mal)
    CSTI -  Collins Stewart LLC
    DADA - D.A Davidson and Co (mal)
    DINO - Dinosaur Financial Group LLC (mal)
    DLNY - Delaney Equity Group LLC
    DOMS - Domestic Securities, Inc.
    EDGX - Direct Edge ECN LLC
    ETRF – E-Trade Capital Markets LLC
    GARC - ICAP Corporates LLC
    GLED - Glendale Securities Inc (mal)
    GNLN - Gunnallen Financial, Inc.
    HDSN - Hudson Securities, Inc.
    HILL - Hill, Thompson, Magid and Co.
    INTL - INTL FCSTONE FINANCIAL INC (mal)
    KWBI - Keefe, Bruyette and Woods inc (mal)
    LABS - LaBranche Financial Services
    LAFC - R. F Lafferty and Co (mal)
    MAXM - Maxim Group LLC (mal)
    MBAY - Monarch Bay Securities
    MERI - Merriman Curhan Ford & Co.
    MICA - Spartain Securities group ltd. (mal)
    MITR - GMP Securities LLC (mal)
    MONR - Monroe Financial Partners inc (mal)
    MURF - Murphy and Durieu
    NITE - Knight Equity Markets, L.P.
    PERT - Pershing LLC
    PUMA - Puma Capital LLC (mal)
    RAFF - Rafferty Capital Markets LLC (mal)
    SALI - Sterne, Agee & Leach, Inc. 
    SSGI - Seton Securities Group Inc.
    STEW - Collins Stewart LLC
    STFL - Stifel, Nicolaus & Company, Incorporated (mal)
    STXG - Stockcross Financial Services Inc (mal)
    TRAS - Tradition Asiel Securities Inc (mal)
    TRWN - T.R Winston and Company LLC (mal)
    UBSS - UBS Securities LLC
    VERT - The Vertical Trading Group (mal)
    VFIN - vFinance Investments, Inc. (mal)
    VIEW - Viewtrade Securities, Inc.
    VNDM - Vandham Securities (mal)
    WABR - Wallstreet Access (mal)
    WEDB - Wedbush Securities Inc (mal)
    WDCO - Wilson-Davis and co (mal)





    Categories
    http://www.otcmarkets.com/research/broker-dealer-dir

    VNDM
    https://www.youtube.com/watch?v=c_BNnwDf5rM


     


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