Benign Banter & Price Predictions, page-3107

I think it works like this...
1. A large number of "stupid" trades are made (e.g. buying 8 shares at a time)
2. These trades always seem to coincide when the price starts moving up
3. Someone always makes a dumb trade at closing to ensure that the price closes lower for the day.

Now, given that you would think that investment is about wanting the share price to always go up (to make money....follow my logic here), why then would someone be doing the opposite?

Here's why...
So, if you wanted to buy 500,000 shares in AGY - you would be fairly safe just putting a buy order on for 500,000 - might push up the price a bit but not to worry.

However, if you wanted to buy 20 million shares - you would be really dumb to place a buy order on for 20 million shares. By the time your order was filled, the price will have doubled.

So, it stands to reason that you buy in slowly in small parcels wiping lines i.e. when you see 120,000 shares all sitting at 22 cents - BAM - buy the lot, then sit back, wait for the dust to settle. And then set the bots to sell some shares out of one account into another buy account and lead the price back down again. Rinse and repeat.

This isn't rational behavior for a small buyer.

Conclusion? it must be a big buyer.