Why I Don't Read Stock Message Boards

Every time I visit a stock message board, I see things being written which quickly confirm the reasons why I don't visit stock messageboards.

The fact is that most people that write on stock message boards have no clue about investing. It's always the market makers fault.

Take this recent post on an Investors Hub message board in which a poster by the name of WardOffMonkey writes this about the trading of Homeland Integrated Security Systems, Inc.:

The MM's know the potential of this company and see where it seems to be heading, so while they can still control the price I think they are holding it down and loading up or helping certain clients load up. Plus, because there is not yet enough momentum from news to overcome the MM's bid/ask setup, they are also able to flip if they so choose.

Message to WardoffMonkey

1. Market makers don't load up on penny stocks. They are in the business of trading off order flow.

2. There is no such thing as a market maker setup. Bids and asks are based on the market for the stock. For example, you will never see a company that trades $100,000 in stock a day trade with a 20% spread. In fact, the more active a stock, the tighter the spread is. Market Makers such as Nite, Herzog will not take a significant position in a penny stock, especially if they're wrong. Why, because it's financial suicide.

If they do take a big position (short or long), they are usually trading against a position.

Thank you