Thursday, November 12, 2015

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


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Welcome to Chedsblog!   
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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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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


 


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

5 comments:

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