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Dr DMS, this was posted on another board recently. You may find it interesting and useful for understanding the AIM market place......
Myles McNulty, quite well known as an AIM investor, produced the following which is an introduction to AIM and might help you to understand this market :
https://www.share-talk.com/aim-for-success-part-1-a-blog-by-aim_chaos/#gs.6x4c9j
https://www.share-talk.com/aim-for-success-part-2-a-blog-by-aim_chaos/#gs.5lwhp4
https://www.share-talk.com/aim-for-success-part-3-a-blog-by-aim_chaos/#gs.6x4mnl
W63,
Lol, The answer was a simple one and one i should have realised...
But goes to show the power of the human mind, i saw MM..immediately thought Market Maker and then it became difficult.
But yes i have never been afraid to ask the obvious questions at the expense of looking stupid!!
An easy question is only easy if you know the answer!
And LSE were very quick and polite with their reply.
Parkez fair play, you were like a dog with a bone but got a conclusion.
Going back to yesterday when i asked if anyone knew what the HH meant on the London Stock Exchange trade shows...
ie trades between HH and MM.
Thinking MM stood for Market Makers...
Apparently after enquiries to LSE because it was annoying me it stands for...
HH (hours) MM (minutes).
its a range finder of trades....pretty obvious now!!!
Thanks for that Doc, i was looking earlier but did not post because i thought some more might appear, the 17.07 trade was not showing and i thought there might be one.
Again large trades....
If you are an ex doc i hope you are wiser...id hate to think what state my patients would be in if i was their doc!!
Yes all trades are reported in one way or another . The point is i am trying to make is the large trades which are obviously driving the direction of the sp are not retail investors...
i do not and i presume you do not phone up an MM ask for a trade quote.
These trades are being made between a party and a MM(NO BROKER), therefore its someone with a little clout, influence. A large holder that the MM feels its worthwhile keeping happy.
When these trades are sorted the sp will rise...Therefore i think in this case distinguishing between ordinary trades and the off book is relevant. Therefore i mentioned off book is not the norm.
Thanks.
seadoc, excellent post and thank you for correcting a lot of carp about MMs keeping the price down etc, filling orders for their mates...they make a living and are salesmen.
However not sure i agree with this...but you being older and wiser!
" If you have level 2 you can see all of this. But most trades on AIM are off-book"
i thought most trades went through a broker and not direct with a MM.
Off book trades which by-pass the broker, i thought were the exception.
Thanks.
Dr_DMS, The MMs will set a range for a day's trading in a share and let the algorithms take over. Of course, if an exceptional RNS is released then they will control the sp to their advantage and possibly for other reasons throughout the day. I have known of an Aim CEO complain about his company's low share price and the response was to duly drop it further.
You chose a good period to start dealing with all the Covid-19 related companies, an exceptional period.
Seadoc, I admire your openness, which one can do when retired. I expect that you enjoyed the Dotcom boom
Seadoc,
Thanks for your explanation, thats quite useful info.
To answer you question, I am PhD in Chemistry since 1997 but just retired @ 48..(mainly employed in petrochemical, oil, additives, automotive and environmental emissions sectors, since 2010 as a consultant).
I've been looking into share dealing for a while now, but only just started in March this year, now seems an ideal time to get into it to me.
My background means i understand the aspects of testing, assays, development, validation, industrialisation etc etc but, obviously, on a steep learning curve w.r.t. share dealing.
I was wondering if the SP is completely controlled by the MMs or if there were other factors involved e.g. could there be automatic algorithms that increment the SP up or down, depending on the volumes of buys/sells involved. I guess the MM can hold the SP at a particular level to gain their own goals, but not to the extent that a company becomes completely under or over valued (company itself would not be very happy - hostile takeovers could happen or if they wanted to sell, may not get a good deal etc)...
Sorry if these are dumb questions, everyone gotta learn somehow! :)
Are these solely controlled by the MM's or other means too?