ALFguy
Trading gives me a headache
- Joined
- 20 April 2006
- Posts
- 457
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- 0
I'm no expert Tech, but I can see the psychology in it.
Throw in a large sell order (usually at the bottom of a stack at the same price). Any weak holders ask themselves why someone with so many shares would sell them at that price (assuming larger holders are big players who know the market better than anyone). So they sell for fear of the price dropping.
The capper will have bids in place ready to lap up all these sellers, therefore accumulating.
Seen it many times now and it used to scare me into selling too.
Throw in a large sell order (usually at the bottom of a stack at the same price). Any weak holders ask themselves why someone with so many shares would sell them at that price (assuming larger holders are big players who know the market better than anyone). So they sell for fear of the price dropping.
The capper will have bids in place ready to lap up all these sellers, therefore accumulating.
Seen it many times now and it used to scare me into selling too.