Advice on Market Makers

[HowMuchLonger]

Looking for some help on the AIM market please (yes I know it is a mugs game).

For the last 3 days the buy sell ratio has been between 2:1 and 3:1 on a stock, so by volume 3x as many buys as sells. Logic would dictate that this would increase the sp, but instead it has gone down every day. When asked I am told this is due to the market makers.
So does this make sense, and can anyone explain the movement?

[anonymous-user]

MM first job is to make money for itself

2nd job is to make the market

who knows how much stock the MM is holding, where the sells are coming from and where the buys are coming from or what the plans are of big holders (that the MM is likely in touch with at least indirectly)

[limpsfield]

HowMuchLonger said:

For the last 3 days the buy sell ratio has been between 2:1 and 3:1 on a stock, so by volume 3x as many buys as sells.

If someone buys some shares where do they come from.

This buy vs sells stuff is, on the whole, bks.

[HowMuchLonger]

limpsfield said:

If someone buys some shares where do they come from.

The market makers act as a kind of float. Very rarely will someone be buying the exact number that a seller is disposing of, so the MM will make up the excess.

[limpsfield]

HowMuchLonger said:

The market makers act as a kind of float. Very rarely will someone be buying the exact number that a seller is disposing of, so the MM will make up the excess.

I assume you are getting your buys versus sells info from a website.

how do you think they get this.

They analyse latest trade price versus where the bid/offer is. If someone trades inside the spread as a buyer getting a good price it will show as a sell. Ergo, it is pretty unreliable info.

Like I said, this whole buys/versus sell stuff is mainly bks. Since financial bulletin boards have been set up, it has been used as a reason to hang onto a stock that is performing badly because "there are more buyers than sellers". It is "just the market makers shaking the tree". etc

What a load of cobblers!

Do not worry about.

What is the share by the way?

[HowMuchLonger]

anonymous said:

[redacted]

I do agree, but every so often.......

[Sideways Rich]

A friend went to a Pro-active Investors seminar in Mayfair last night and is now banging on about AIM companies and the potential ten-baggers! Oh dear!

[RemainAllHoof]

Sideways Rich said:

A friend went to a Pro-active Investors seminar in Mayfair last night and is now banging on about AIM companies and the potential ten-baggers! Oh dear!

In my time, I've "invested" in 10 companies, 8 AIMs, 2 blue chips. Both blue chips did very, very well... 2 AIMs did ok... the other 6, well, I'm in it for the long term... it's an investment, roight. Apart from the two that went under.

PS Buy Toad.

[Sideways Rich]

RemainAllHoof said:

In my time, I've "invested" in 10 companies, 8 AIMs, 2 blue chips. Both blue chips did very, very well... 2 AIMs did ok... the other 6, well, I'm in it for the long term... it's an investment, roight. Apart from the two that went under.

PS Buy Toad.

Exactly! Sorry OP for diverting the topic

[jeff m]

I've been away from the UK market for a long time, but I would guess they are heavy.
Watch (and get to know) the spread.

[marsred]

limpsfield said:

... "there are more buyers than sellers". It is "just the market makers shaking the tree". etc

You've seen message boards for tanking shares too then?!

A frenzy of boastfull claims about buying a Z4 with the profits when the ramp starts ending up like a support group when it runs out of steam.

"I think this is just a slight correction before we have a year of nice steady increases and then a sharp rise when the resistance at xxp is broken blah blah blah"

[RemainAllHoof]

marsred said:

ending up like a support group

I shouldn't laugh, but I can't help it.
"How much did you invest?"
"Just hold me. "