gse1963...Yes I can validate it...it happened to me!lolSeriously...

gse1963...

Yes I can validate it...it happened to me!

lol

Seriously though, over time your learn to read the market...when a stock reacts in an unexpected way, you recognise it.

Plenty of reasons for this...some genuine, some not...from the end of a large line being fed into market (or bought at market), to technical triggers, etc.

Then we have "reactions" to your very pressence in the market...typically in stocks where a group might represent most of the buyers and sellers and the appearance of your order stands out like the proverbials.

If they are accumulatng they will run the stock up and keep buying until you finally lift you bid...this repeats until either you bail, or you finally get jack of it and buy at the ask at-market. It can be more than one line.

Once you do and they realise you are done, they typically run the stock down again to their "happy zone" and in the process, strand you into a losing position.

If you want out, you will need to do so at a loss...to them...unless others enter the fray.

In the initial days I would trade with the full amount, leaving just 5% in cash to cover potential moves against me (ie, to prevent a margin call)...I found a high proportion of stocks would unexpectedly move about 6% against me the day after I bought.

Often against the DOW or XAO moves which I was playing to.

Typically, not long after I reduced my position (I didn't usuaklly tip more money in), the stock would recover the full amount. Not one of my stocks fell more than 7% in this time...and in the vast majority of times I got a margin call (by phone) within seconds of being "in call".

lol...they would have to have been watching for that to happen.

Anyway...I increased my cash (margin cover) to 10%...and what do you know, many of my trades suddenly started moving 11-12% against me...lol...again, in complete contraste to expected outcomes.

Prior to this, I had never had a stock move against me that much...but now I was seeing it in about 1 in 3 trades???

I decided to change tact...moving away from the more thinly traded, DOW reactive LVR stocks to the more mainstream ones, where high volumes limited some of the games being played to flush me.

Of greatest interest...these "manufactured" moves in low volume LVR stocks resulted in a "call" by phone literally within minutes of the event (seconds at times)...but when I traded the higher volume stocks, not only would such calls take hours, they were just as likely to be via SMS and/or at the end of the day.

A few times a bad news event hit during a trade, where it was clear some heavy hitters were getting out...on two such ocassions I did not get a margin call for 2 days?

Clearly they were keen on the idea of not seeing extra selling pressure?

Have not used CFD's seriously for some time.

Cheers!