This week’s SteadyTrade podcast promises to be interesting — our hosts are interviewing an undercover market maker!

OK, he’s not really undercover. But we are diving deep into the underbelly of the markets to give you a glimpse of what goes on behind the trading screens…  

Our hosts Kim Ann Curtin, Tim Bohen, and Stephen Johnson are talking to former market maker J.J.

With powerful and extremely wealthy former clients like offshore banks, CIA spooks, and arms dealers — rest assured he has plenty of stories to tell. 

He’ll share how he got started, what retail traders are up against in the markets, and why stock market manipulation isn’t all about stock price… 

Plus, he’ll also share some of his favorite tricks to dump shares on average retail traders. 

Don’t miss it!

Who Is This Market Maker? 

Our guest went from being a bouncer at a nightclub to his first trading-related job as a phone chimp (think telemarketing salesman) … Then he finally found himself “weaseling his way in” to become a market marker at a trading desk. 

Over the course of his career, he helped bring over 200 companies public and traded billions in dollar volume.

After suffering a heart attack and being technically dead for four minutes, he had a change of heart. 

Now he says it’s time to give back. He co-hosts the “Confessions of a Market Maker” podcast and is a training educator for micro futures. 

J.J. also educates retail traders on the very tricks he used to pull. His hope is that he can help save them from losing money … or at least from blowing up their accounts. 

Get the Whole Story

Stephen and Tim often discuss the ‘us vs. them’ game you face as a retail trader in the market … Well, J.J. is a former ‘them,’ and this interview with him is like a peek behind enemy lines. 

He used to be one of those guys that nobody talks about much in the market — manipulating orders, supply, and stock prices. He used to help his clients sell shares and make large amounts of money in the process. 

Everyday retail traders need discipline and to constantly study. But on the other side of the market, J.J. reports it’s about favors — along with extortion and even blackmail. That’s how he got work done. 

Part of his job was finding ways around market rules and avoiding getting arrested. 

He tells Kim, Tim, and Stephen that he’d pay off compliance officers or hire promoters — sometimes paying them with free stock or through offshore accounts. Bottom line: J.J. would do whatever it took. 

Granted, this was back when you didn’t even need ID to open a brokerage account. At one point he had 50 accounts for trading.

And that’s just the beginning…  

You won’t believe his other crazy stories from the Wild West of market manipulation in the ‘90s… 

How Stock Manipulation Really Works 

J.J.’s opinion as a former market maker is that trading is all about supply. He says demand is artificially created. 

According to him, there are two types of buying … First, there’s real buying for investment purposes. And then there’s the kind of buying you see in penny stocks — which is to increase a stock’s price. 

His job was to add liquidity to the markets so people with vast amounts of cheap shares could sell them at higher prices. 

Retail traders would see the increased volume and price and chase it. Then a market maker could slam them with supply. (Sound familiar?)

The clients and promoters who get free stock don’t care about the price … It’s all about liquidity. 

J.J. reports he’d play the Level 2 like his own personal chessboard. Tune in to learn more about how back in the day he could manipulate and move orders as he pleased.  

Secrets Your Trading Can’t Live Without

This episode is full of lessons and insight into the dark side of the markets. Be sure to tune in dive deep with this former market maker! Here’s just a quick preview…

  • J.J.’s favorite way of manipulating stock moves. 
  • The most important thing retail traders have to watch for in the current market.
  • How market manipulation still happens today — even with newer regulations. 
  • Why nobody should short Tesla, Inc.
  • The most important thing to know about a company.

And J.J. confirms one of Tim’s suspicions about recent market trends. (And yes, Tim’s REALLY excited about it!)

Get the Resources Mentioned in This Episode 

Liar’s Poker: Rising Through the Wreckage on Wall Street” by Michael Lewis

Market Wizards” by Jack D. Schwager

The Buy Side: A Wall Street Trader’s Tale of Spectacular Excess” by Turney Duff

Reminiscences of a Stock Operator” by Edwin Lefèvre

Hedgehogging” by Barton Biggs

(As an Amazon Associate, we earn from qualifying purchases.)

Talk to Us!

How did these market maker secrets open your eyes? What do you think of stock market manipulation? Leave us a comment and let us know…

Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!

Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.

Into this episode? Please leave a review on iTunes.

Meet Our Hosts

Get to know Tim Bohen, Stephen Johnson, and Kim Ann Curtin here.

Follow our hosts on social media…

Tim Bohen

Twitter: @tbohen

Instagram: @tbohen

Stephen Johnson

Twitter: @Jonk87

Instagram: @stephenjonk87

Kim Ann Curtin

Twitter: @kimanncurtin

Instagram: @kimanncurtin

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