BRN 1.89% 26.0¢ brainchip holdings ltd

Market Manipulation

  1. 575 Posts.
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    I thought I would put together some of the tricks that are used to manipulate the retail investor out of their money. This should be useful to new investors in BRN and any other stock.
    Please feel free to add to this thread any tricks that I have not included. I will add more as time permits.

    Pump and Dump Used to get investors shares at a lower price.

    1 The shares are sometimes driven up initially with very low volume causing the retail investor to think that there is a run up.

    2 Rampers are used to post messages like:“Someone knows something..”“Last chance to buy at this level..”“I heard something..”. etc....All designed to create a state of panic and FOMO, causing many retail investors toto hop onboard which causes the shares to rise further. Usually coming from regular downrampers or new users with very few posts.

    3 The manipulator stops purchasing and waits until the run up is exhausted.

    4 Sell orders are placed safely above the current trading level with sufficient quantity to create the impression that there are more sellers than buyers changing the sentiment to sell. (If there is no Pump but just Dump, then the process starts at point 4).

    5 Multiple sell orders are placed at market which start a rapid sell. Driving the price down rapidly without much volume.

    6 This is usually combined with down ramping and panic statements on multiple forums (by payed downrampers)
    “Trend has reversed.. “
    “Smart $$ are getting out” etc..
    “Get out while you can..”
    “This is going to $0.05..”
    The threads get flooded and look like the thread sentiment is overwhelmingly negative. All designed to trigger the flight response in people. Sell!!

    7 As people start selling the price gets driven to a new low.

    8 Stop losses are triggered casing further sell orders and more downward momentum

    9 Bots may be used to purchase using algorithms designed not to reverse the trend, but not always.The same can be accomplished in reverse.

    Short Selling”
    Funds lend their shares to shorters. Shorters borrow the shares and pay the funds 5%-15% for the use of the shares. You can see how many shares are shorted on this page:
    https://www.asx.com.au/data/shortsell.txt
    Also on Shortman
    https://www.shortman.com.au/
    Short selling usually takes place after a normal large rise or when the Shorters believe that either they can drive the shares down and purchase at a lower price.
    There are a number of coordinated strategies used.
    They may pump up first and use the techniques mentioned above to amplify the results for themselves.
    Shorters often operate in large groups to amplify their effectiveness.
    Some are actually part of "trading advisory companies" that recruit small mum and dad investors and coordinate which stock, the timing and the direction (Some actively advertise on TV and online, you probably have seen their ads).
    The same method is used by Day Traders.

    If you are aware of the tricks they use to try and manipulate you, you should be in a better position to make a better decision for yourself.

    Feel free to post a link of this post to other threads if you wish
    Some of the other topics I would like to cover later:
    • Types of Rampers and how to identify them,
    • Bots,
    • End of Day price manipulation etc
 
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Last
26.0¢
Change
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Mkt cap ! $482.5M
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27.0¢ 27.5¢ 26.0¢ $1.792M 6.748M

Buyers (Bids)

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37 979069 26.0¢
 

Sellers (Offers)

Price($) Vol. No.
26.5¢ 612503 5
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Last trade - 16.10pm 16/05/2024 (20 minute delay) ?
Last
26.5¢
  Change
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27.5¢ 27.5¢ 26.0¢ 4881669
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