From another stock i hold, and a quality informed poster....(Tricks of the Trade)
A market professional may want to accumulate a large position in a stock that is trending strongly; either for his own account or for a major client. How does he/she do this? If he starts placing buy orders in the pool, he will chase the stock up sky high, without being able to build a big enough line. The golden rule is: buy into weakness.
Patience
The professional bides his time, waiting for the stock to consolidate or start a short-term correction. He knows that trading will be quiet during this phase: buyers lose interest for a while and look elsewhere. He also knows where most traders have their stops.
Adjusting StopsIn strong-trending stocks, most traders will seek to lock in profits by placing their stops below the previous short-term (or intermediate) low. In a consolidation they tend to move their stops up to just below the base.
For further details see Adjusting Stop Levels.
A few well-placed sell orders on a quiet day will drive the stock below its' support level. Stops are triggered, sending a flood of sell orders into the market. Everyone takes fright while our market professional steps forward and scoops the pool; buying in the face of the correction. Selling dries up when the stops are filled and the stock soon recovers back into its normal trading range. Everything returns to normal; except that our market professional now has a sizeable parcel of stock, accumulated at bargain-basement prices; and a group of punters curse their luck while the stock soars into the stratosphere.
MAY BE MAYBE NOT??
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Last
3.9¢ |
Change
0.000(0.00%) |
Mkt cap ! $17.73M |
Open | High | Low | Value | Volume |
3.9¢ | 3.9¢ | 3.9¢ | $6.886K | 176.5K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 25000 | 3.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
3.9¢ | 92843 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 25000 | 0.038 |
1 | 82000 | 0.037 |
3 | 55000 | 0.035 |
2 | 146358 | 0.034 |
3 | 425006 | 0.032 |
Price($) | Vol. | No. |
---|---|---|
0.039 | 92843 | 1 |
0.040 | 215000 | 1 |
0.041 | 208574 | 1 |
0.043 | 50000 | 1 |
0.044 | 45000 | 1 |
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