The issue with baseline ishalf penny flippers feel secure because of the base wall....so they play this game of buying 250000 shares at 7.5 cents and when its filled they automatically put on a selll for 250000 shares at 8.0 cents...making a whopping $1250 minus the daily in and out commissions to your local bank....if it gets filled
if they would just buy and hold for a 40-50% runup they would make more money quicker and pay less commissions....
the BIG risk for them with this stategy is that they likely will be out of the position at the end of every day and when some big news breaks the next morning before market and the bid becomes 10 cents or more they are left with no postion and likely will need to pay much higher to get back into the momentum run...by the time they want to buy in they will be paying 12 cents or more
they do serve a useful purpose though for creating low price buying opportunites...keepin the price down