SXY 0.00% $4.60 senex energy limited

A company also doesn't exist in a vacuum, what a company has to...

  1. 1,932 Posts.
    A company also doesn't exist in a vacuum, what a company has to offer must be compared to every other investment available. If everything is cheap, then being cheap isn't enough to buy.

    Ignore the algo trading, you cannot guess what it is doing.

    It is exceptionally dangerous for an entity to spend lots of $'s to sell down a stock in order to gain cheaper shares. As another entity with big wallets may think, "sweet cheap stock" and buy it all up all for the original entities hard work.

    Thus market forces will be in play to keep the SP from falling to far away from its true value. Sometimes, I would think, you get several entities that are doing the same thing at the same time, amplifying the effects. So you get sudden periods of up/down/sideways action, all on higher than usual volume. That is the key, volume. It will always return to normal when that action stops.

    Just be sure you have a stop-loss in place and the discipline to enact it, as well as a take profit price. That way you don't have to bother wasting your time inspecting meaningless data like algo trading.


 
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