TA discussion, page-4960

You have hit on a favourite subject of mine @susieq so I feel the need to join in with an opinion.

‘Unintentional down ramping’ can be found on any HC sub-forum and not just on the AJX threads. It occurs because posters who hold the stock don’t immediately recognise that their comments are not made in a vacuum but could influence the sentiment and subsequent actions of other readers. As a result negative predictions, whether TA based or not, can become self-fulfilling and produce an unwanted result.

Institutional investors have sufficient financial training to base confident decisions on fundamentals whereas the average retailer’s focus is limited to share price movements. That lack of confidence means their sentiment can be easily influenced, intentionally or not.

One of the most effective lines is that it doesn’t matter how good the FA is the SP won’t go up. Weak holders conclude that they are wasting their time and sell out. Potential buyers opt not to commit. The line often appears, sometimes in a subtle manner, after a period of price stagnation.

I think posters need to give a little more thought to their seemingly harmless comments. Usually the ones that complain the most about a falling share price are those that are unconsciously contributing to its cause.

As Pinto says, retail shareholders can be their own worst enemies.