MM's27 Nov 2013 16:24
What they are referring to is the Market Makers manipulating the price in an unexpected direction. It is their job to set the price at a level to balance off the buys against sells, hopefully resulting in the correct price of the stock. This can often result in the SP(Share Price) being lower than one would expect, or higher than one would expect. Eventually it all gets resolved and the SP gets to the correct price. Judging whether the SP is lower than it should be, or might go up to, or higher than it should be, or how low it might drop to, is how we make or lose money by trying to buy or sell at the right time. In my view it makes no sense for the market makers to try and manipulate the price, for whatever reason, but, if they are then there is nothing you can do about it, so don't worry about it. Just try to keep learning and you will get the hang of it eventually. Don't risk more than you can afford to lose though, especially while learning. Sorry if I am incorrect in any of this, other views are appreciated. GLA.