Not being from a trading background - can someone please explain how on a relatively low volume stock like NEN - how you make money by pushing the price down??
I understand the concept - but in practice??
e.g. I sell down 500,000 shares to say push the price down a cent or two - then I buy at the lower price - but there are always buyers as well as sellers?? Surely this is a risky proposition for the holder selling 500,000 shares?? How can they guarantee they can buy them back cheaper?? Without having options/derivatives to secure your upside and downside - is this really possible??
I can understand this strategy (and having the associated options/puts in place)for a stock that trades 10M share++ per day - where 2 cents makes you some big bucks - but for NEN???
Happy and willing to be educated by a trader....
NEN Price at posting:
32.7¢ Sentiment: Hold Disclosure: Held
