Sick of traders keeping prices low
- Thread starter NewTrade
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tech/a
No Ordinary Duck
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Let's answer the question
Say you have larger than average holding in an illiquid stock.
One that if you wanted to lighten a position would see price plummet if you attempted to sell 500000 in one sale at market.Not a good idea particularly if it moves the price dramatically lower.
So you sell small parcels at x level.
No one notices your un winding a very big position.
Infact if thereis strength you can take advantage of any higher price.
THE INTENTION ISN'T TO DROP PRICE
It's the EXACT opposite.
Unwind a position at the best possible price!
Nanu Nanu!
Say you have larger than average holding in an illiquid stock.
One that if you wanted to lighten a position would see price plummet if you attempted to sell 500000 in one sale at market.Not a good idea particularly if it moves the price dramatically lower.
So you sell small parcels at x level.
No one notices your un winding a very big position.
Infact if thereis strength you can take advantage of any higher price.
THE INTENTION ISN'T TO DROP PRICE
It's the EXACT opposite.
Unwind a position at the best possible price!
Nanu Nanu!
Ahh, well that makes sense!
My thought was that he was trying to accumulate holdings - bu your method makes sense.
Thanks for that - I guess it is just another strat to follow
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Ahh, well that makes sense!
My thought was that he was trying to accumulate holdings - bu your method makes sense.
Thanks for that - I guess it is just another strat to follow
Hi NT, As tech has mentioned above, it could be a larger holder unwinding (therefore it would not be the same trader who is buying and selling)
Of course your initial assumption could also be true .... A large "accumulator" will often buy parcels of shares, then immediately have smaller parcels "botted" into the market to give the perception to the casual investor that the SP is not moving/stagnant.
With tech's example, we need to bear in mind it takes a long time to sell a few million shares at a few hundred shares per trade, so the botting in this case could go on for a long period.
The hard part is working out which scenario is going on. It sometimes helps if you put yourself in the position of the trader/traders who are either unloading or accumulating, and ask yourself what you would do at the current price levels
For example, if you were the accumulator, what would you do on down days?? Buy more or less (ie is the volume telling you anything) ....... Does the SP recover quickly on up days (volume is doing what again) .......... is there a pattern to the price action?
If you were the large "unloader", would you sell more or less on down days
Of course, the overall market sentiment at the time may override what would be considered normal price behaviour.
Also, even if you are the accumulator ........ assuming you have a truckload of stock, you may still be happy to push the price down as far as possible to mop up all the sellers (future potential resistance on the way up), assuming of course you have correctly analysed the stock, and it will eventually scream up
Large accumulators of any stock are more likely to be accumulating because they know something that you and I don't ..... (Oops, sorry, there is no such thing as insider trading .... disregard that comment
Bottom line is, there are no rules ..... price will go where it goes. Looking at how the price action/volume behaves around previous support and resistance levels will give you the most reliable info to base a guess on!!
Sorry for the long winded ramble ..... Cheers.
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I joined the "Rational" party a few years back .... but I prefer not to discuss Politics
:Cheers
But you have pulled this info out of your ass.
You have absolutely no idea whether someone is selling to themselves or not, you have jumped to a massive conclusion based on nothing. Price is not doing what you want it too so you are having a whinge about it.
There are plenty of other possible scenarios but you automatically jump to the conclusion someone is selling to themselves.
Thank you, Thank you! I bow to you! I bow to your brilliant powers of deduction! The entire forum rallies to your word, the heavens quiver at your very expressions. From whence does thou gather such power that God himself may shiver in his throne, that the renders the Devil into total envy?.......
Uncovering what fact? There have been no facts posted in this thread, that is the problem. Analysing inconsistencies is fine but jumping to wild conclusions based on "watching the stock closely for 2 days" is not.
Your precious stock currently is up over 7% so does that mean someone is manipulating price upwards? No I didn't think so, you only tend to whinge and claim conspiracies when price doesn't move the way you want it too.
Word of warning, don't push your luck.
You started this thread with a question, more of a whinge really and I'm free to post my views on it, you are now resorting to being a smart @rse because I'm not playing along with your views of the market.
Sorry, what is up 7%? I never mentioned the stock.
Will you guide my soul to Valhalla oh great Valkyrie of the East?
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Talking of trading plans, how are your Amibroker experiences going so far?
A bit slower than anticipated, but not to bad
I am doing uni part-time which has taken up a lot of my spare time. However, one of my units is Introduction to Programming, which has really helped me 'understand' how to code in Amibroker.