This is a response to what cy7 said on the other thread
Cy7 said,
Gday Eddy and other DOM followers,
I hold DOM shares, so it is my interest that they prosper. What happens to the company in the short term may well be influenced by technical analysis, but the real story as always is the fundamentals.
Cy7 I am happy with the fundamental analysis you have done on DOM in the other thread. We both agree the company needs to improve its game and I think they are putting things into place to increase production over the next 6 months.
BUT in spite of these fundamentals, I have been watching this stock for a while and I reckon with $1 million or less and a high frequency trading program you could make the price go wherever you like...
If you watch the daily dribble of trades they range from 1 share to a few hundred shares being bought long and sold short continuously.
In between these high frequency trades are the amateurs (like myself) who "invest" or trade and get stopped (or panicked) out of the stock at various price points. Some amateurs profit from following the direction of pro's but others would be providing them an income stream from their self managed super or hard earned savings.
I was watching the trades going through on Friday 26th. As usual the tiny sell orders of 1 share at 1 cent lower than the last sale were being dropped. The final trade of the day at 3.59 pm was 1 share for $2.60 dropped into the sell side. And everyone says "so what"...
It may be "so what" but I have noticed these 1,2 or 100 share sales and purchases happen all day every day. It could even be the same buyer and seller - I cannot see shy there is anything to stop the same person (computer) selling and buying at the same time is there?
If you were able to drop sell orders of a few shares always 1 cent lower than the bid it would not cost you much to make the share price go where you want it to - in either direction. What is daily volume on this stock $1-1.5 million?
Your goal as controller of $1 million of stock would be to dribble sells or buys and as the price is controlled and moves you could pick up cash on the momentum as stops are hit or short covers created.
Surely with a small amount of capital and a few relatively low volume stocks it wouldn't be that hard to make a good living doing this?
maybe should get a business plan together...
Just my thoughts
DOM Price at posting:
$2.60 Sentiment: None Disclosure: Held
