Author Topic: Market Manipulation  (Read 5595 times)

administrator

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Market Manipulation
« on: August 18, 2010, 10:59:54 pm »
I experienced this first hand today as a few stocks that I was watching were down today mainly due to one big seller dumping large numbers of shares. What happened next was lots shares were sold in small quantities driving the price even further. I assume these were the small traders rushing to sell their shares thinking that the price was going to go down further due to the strong selling pressure. But then close to the end when things settles a large number of shares where bought driving the price up.

Has anyone else experienced this? Can we profit from those large scale manipulations?

CyberTrader

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Re: Market Manipulation
« Reply #1 on: August 19, 2010, 04:31:57 am »
I think that some larger players in the market just dump stocks to trigger stop losses and then buy up on the cheap. This causes a short dip that they exploit to their advantage. You as a trader just need to be smart enough and not get caught  in the jaws of these sharks.

This is just my 2 cents.

joeoil

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Re: Market Manipulation
« Reply #2 on: August 19, 2010, 02:24:03 pm »
I have given up trading stocks because of what you mentioned and also that robot-trading from the "big players" now seems to dominate most of the stock markets world wide. Unless we have a clear trend in the market I think it's almost impossible to make money for me and other small sparetime traders. For the last 2 months I have traded ETF's (leveraged) with greater success. It's not that volatile.


administrator

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Re: Market Manipulation
« Reply #3 on: August 19, 2010, 10:26:12 pm »
I have to agree with you both. Trading stocks is getting harder and harder due to uncertainty and deliberate manipulation especially after the GFC. Everything seems to have change since then. Maybe this is because there are new market manipulators or there are more of them. I think that trading in the medium to long term is still profitable but one needs to be much more careful then before because you are more exposed especially in these uncertain times.
« Last Edit: August 20, 2010, 01:22:18 am by administrator »