The Shakeout (Tricks of the Trade)
A market professional may want to accumulate a large position in a stock that is trending strongly; either for his own account or for a major client. How does he/she do this? If he starts placing buy orders in the pool, he will chase the stock up sky high, without being able to build a big enough line.
The golden rule is: buy into weakness.
Patience: The professional bides his time, waiting for the stock to consolidate or start a short-term correction. He knows that trading will be quiet during this phase: buyers lose interest for a while and look elsewhere. He also knows where most traders have their stops.
Adjusting Stops In strong-trending stocks, most traders will seek to lock in profits by placing their stops below the previous short-term (or intermediate) low.
A few well-placed sell orders on a quiet day will drive the stock below its' support level. Stops are triggered, sending a flood of sell orders into the market.
Everyone takes fright while our market professional steps forward and scoops the pool; buying in the face of the correction. Selling dries up when the stops are filled and the stock soon recovers back into its normal trading range. Everything returns to normal; except that our market professional now has a sizeable parcel of stock, accumulated at bargain-basement prices; and a group of punters curse their luck while the stock soars into the stratosphere.
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Last
22.0¢ |
Change
0.005(2.33%) |
Mkt cap ! $52.01M |
Open | High | Low | Value | Volume |
22.0¢ | 22.0¢ | 21.5¢ | $19.19K | 89.03K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 35040 | 21.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
22.5¢ | 20000 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 35040 | 0.215 |
1 | 12479 | 0.205 |
2 | 90000 | 0.200 |
1 | 3030 | 0.165 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
---|---|---|
0.225 | 20000 | 1 |
0.240 | 34336 | 3 |
0.250 | 117648 | 1 |
0.265 | 56523 | 1 |
0.270 | 88181 | 3 |
Last trade - 12.33pm 13/09/2024 (20 minute delay) ? |
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