Crying wont help you and begging wont do you no good
Crying wont help you and begging wont do you no good.
Vringo has been pumped from every direction, and the sentiment is generally strong in favor or a pósitive outcome. But you cannot deny, that MMs are taking it down against every spike. What it does, is it breaks the spirit of the longs, and scares away other potential investors. Nobody wants to buy as thes tock is falling. So, the MMs keep it beaten down, and looking weak, like there is some invisible authority which has already decided taht Vringo is worthless. That is why you stare at the screen in disbelief, as it starts out green and turns red. It seems unbelievable, but remember what a market maker is. Market makers make the market in a stock. They will take the price of a stock down, to hit stops, and to break the will of the traders. The MMs have orders to fill, as certain prices, and they wait until othe buy side gets a bit thin, and they hit it with short sells. Then they cap it over with a lower ask, and it drives the price down.
I have seen this with THLD, which I hole a fair amount of. It will drive you crazy, and crazy enough to sell, when you really would prefer not to. And if for some reason, your broker let you buy on margin, then the MMs will force you to close your position.
They know they have a lot of time to mess with this.
what then releases the market makers from shorting and pushing a stock down? What if for example, one day vrng gets haulted, an announcement is made that a settlement (lets say) was reached, and the stock opens up at say $20.00 per share, on lets say $4billion settlement. Should we expect that immediately the stock would be shorted back down to single digits, or does it continue up? hypothetical I know, just trying to understand the tech/psych of Wallstreet vs Mainstreet.