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- Beware even if market is up
Beware even if market is up
- By Jovi FindRich.com
- Published 08/22/2007
- Stocks and Shares
- Unrated
This is one of the tactics deployed by Short Players when there is good news, but the market volume isn't high enough to overrun them.
Short players put up 4,000 lots to buy-up at 0.425. Unlike normal days, 4,000 lots is quite huge and since DJ was up yesterday, this induced other players to buy up at 0.43. However, the Sell Queue keeps "topping-up", in fact by Short players themselves.
After sensing that the buyers are exhausted and gathering enough stocks at 0.430, the Short players tear down the fake 4,000 buy queue, which immediately induced fear.
The 0.425 Buy queue almost vanished in less than 10 secs, after being noticed by some alert players and the selling
down starts.
The Short players would then put up small buying queue at 0.420, 0.415 and below. This time, they create a large Sell Queue and small Buy Queue to induce Fear. Those who played intra-day or Contra would panic and start to sell down... to the Short Players who are busy covering the Short position and getting profit.
The above is the main tactic involved, but ofcourse there are other side issues, e.g.:
1) Spreading rumours about the stocks are going up - creation of buyers and new funds.
2) Selling down more to create even more fear or bargain hunters to come in.
The only way to beat the Short players with big pockets are only if there are bigger players coming in and buying up within a short time.
Short players put up 4,000 lots to buy-up at 0.425. Unlike normal days, 4,000 lots is quite huge and since DJ was up yesterday, this induced other players to buy up at 0.43. However, the Sell Queue keeps "topping-up", in fact by Short players themselves.
After sensing that the buyers are exhausted and gathering enough stocks at 0.430, the Short players tear down the fake 4,000 buy queue, which immediately induced fear.
The 0.425 Buy queue almost vanished in less than 10 secs, after being noticed by some alert players and the selling
The Short players would then put up small buying queue at 0.420, 0.415 and below. This time, they create a large Sell Queue and small Buy Queue to induce Fear. Those who played intra-day or Contra would panic and start to sell down... to the Short Players who are busy covering the Short position and getting profit.
The above is the main tactic involved, but ofcourse there are other side issues, e.g.:
1) Spreading rumours about the stocks are going up - creation of buyers and new funds.
2) Selling down more to create even more fear or bargain hunters to come in.
The only way to beat the Short players with big pockets are only if there are bigger players coming in and buying up within a short time.
