BLR 0.00% 0.2¢ black range minerals limited

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  1. 2,753 Posts.
    re: careful................. Capping - when someone has accumulated enough stock to put a large portion on at whatever price they are prepared to accumulate beneath.

    Quite often weaker traders will be frightened by a large amount of shares for sale, panic and sell beneath the cap, into the waiting arms of the capper.

    Sometimes with a very large cap, the more nervous the weak are and to the delight of the capper, the price may come down very quickly and even lower. After the capper has swooped, the way above is cleared for another rise in share price.

    Repeat until bored or until all weak traders above are flushed.
 
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