WKT 1.04% 9.7¢ walkabout resources ltd

Charting 2.0, page-394

  1. 14,496 Posts.
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    Hey Sir,

    Really good question. And oh how i wish i had that situation.

    Think of it like this, if one of the major holders wants to liquidate his stock to put braces on his daughter then it gets sold on market and they accept all bids to soak up the total amount hence why SP’s fall when a large seller quits his holding. To my knowledge and happy to be corrected it’s the same when SP hits a stop, it will be absorbed by the stop price and under bids.

    https://www.investopedia.com/articles/trading/08/trailing-stop-loss.asp

    This is why major holders sell down in waves spread across different times.

    It’s also the reason pro traders won’t touch anything with low volume but nor do they deal in volumes you’re thinking of.

    The opposite of this off course is when major holders buy in. They rarely do it in one purchase as it drives the stock to high, they may take 5-6 goes spaced accordingly to get their fill.

    Hope this helps and again, i’m Happy to be corrected.

    Cheers
 
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