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And just manipulating and manipulating in wide swaths? Looks like it is all legal, as long as they keep it under the speed limit, say 5% per day share trades in a given equity?
Day trading


Hi, Skahhh,

For most stocks, commodities and other investments, the market is just too big to be manipulated. What looks like a lot of money to you and me — and is a lot of money for an individual — is just noise to the overall market.

That's not to say that they don't ever try. Most notoriously, the Hunt Brothers pushed silver up to about $54 in 1980. They declared bankruptcy and were convicted of conspiring to manipulate the market. By the way, when they started acquiring silver in 1973, they were among the very wealthiest people in the US and world.

Now, when it comes to illiquid penny stocks, you may know that the story is quite different. Then you do have cases of "pump and dump."

That's where somebody buys a small, over the counter stock, then somehow pumps it up. Most commonly used are Internet investment chat rooms and forums, but financial newsletters have been accused of this too. If you can get a few hundred or thousand people to buy the penny stock, the price will go up. Then you dump it.

Or you can do the opposite. Short a stock, then bad mouth it until the price goes down where you want. I forget the catchy phrase for that.

But notice that these scammers are not using their money to artificially raise or lower price of stock, just word of mouth.

I don't believe that using your own money to push up price of a stock or option — by buying more and more — makes mathematical sense. When you run out of money, demand will return to normal, and so will the stock price, leaving you holding a lot of overpriced shares and options.

Remember that in the money options go up (or down) in price dollar for dollar compared to price rise (or fall) of underlying stock.

best, Rick

I've been doing a lot of research and I think I'm ready to begin day trading. What is the best online stock broker for day trading? I'd be making a ton of transactions and would need minimal to no processing times for my orders. Can anybody help?

Thanks.

Day trading


I watch a day-traders chat room at green on the screen…and they all seem to use Scottrade…plus others…but Scott provides many of the " movement" screens that they employ.
There are many "advisory" services for day traders that offer trading signals in chat rooms. Examples are pristine.com, marketwise.com, lbrgroup.com etc. I'm wondering how many of them are out there. And, on average, how much capital does it take to start up one of these. Taking the question further – how many "clients" do you need to break even per month on average, what's the turn over rate in clients and how do these companies go about recruiting clients. Is that too many sub-questions? (This is my first question).
Day trading


Well, just the fact that your question had so many parts probably gives you an indication of how many services there are out there.

From what I can tell, there are thousands of advisory services. Some I know of have several products (like schaeffer.com). Others just have one.

In any event, the number of subscribers needed is dependent upon your fixed and variable costs, not of someone elses. My startup costs are fairly fixed, so then, it's mainly x subscribers at $y to break even, and then after that, it's profit until such point I need another person to manage the flow of information, etc.

The key in differentiating yourself is your performance and your advertising. Both will get you more clients, however, your performance will help keep them.

Hope that helps!