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Bishop5067, without news why is it going to bounce? The trend for the last week has been downwards.
" Lots of rookie investors who haven't fundamentally researched and understood the stock sell based on the SP dropping."
But what they do understand is that you can buy back in at a lower Sp and not only protect your capital, but have more shares for the same outlay. Doing your research and believing in the company, while watching your profits disappear makes no sense whatsoever.
These bloody MMs again! It reminds me a script I saw once a while back...:
MNs: Hey, baby, you got money?
Newbie: yes, just this minute.
MMs: Well, baby, me so horny. Me so horny. Me love you long time. You invest?
Newbies: Yeah, we might invest. How much?
MMs: Fifteen thousand dolla.
Newbies: Fifteen thousand dollars, for both of us?
MMs: No. Each you fifteen thousand dolla. Me love you long time. Me so horny.
Newbies: Fifteen thousand dollar two boo-coo. Five thousand dollars each.
MMs: Me suckee-suckee. Me love you too much.
Newbie: Five thousand dollars is all my mom allows me to spend.
MMs: Okay! Ten thousand dolla each.
Newbies: What do we get for ten thousand dollars?
MMs: Everything you want.
Newbies: Everything?
MMs: Everything.
Newbie to the other newbie: Well, old buddy, feel like spending some of your hard-earned money?
The newbies take their wallets out with their cash when another young MM boy walks up behind them and grabs the wallets
from their hands. The boy runs to an accomplice sitting on a waiting laptop and tosses the wallets to him. Then in
mockery the BOY excecutes a few, Bruce Lee moves before running away laughing.
The end
Supply and demand
And another question which probably sounds stupid to most here, but WHAT actually dictates a sp??
Thanks for all the messages guys. I still down understand HOW the MM devalue stock? Literally how it works. I get they trigger stop losses but how do they drive the sp down to that point - how have the got control? Will certainly be watching those YOuTube links later!!
Totally agree Hants. I’ve seen my pot deplete quite significantly but my average is a lot lower than this. I don’t think we’ve seen anything yet in terms of potential.
If a rookie investor bought on recommendation from Motley Fool
the rookie investor must wonder why subscribe. This investor is in
need of good advice and paid a price for being turned into a fool if he
does not stay cool? Who knows?
hants when the RNS does arrive... we may drop but the next few sessions we will rise A LOT.. dont let people rob you... dont let it happen pal
I don't blame anybody who's decided to sell out. Especially those who bought in higher.
I just can't bring myself to do it. I first bought in at 40p having done extesnsive research, I could take a nice profit right now and be totally happy with it.
The problem is, I strongly believe the RNS we're all waiting for will arrive and will deliver. At that point, it will be a nightmare trying to get back in. Even more so if it's a 7am RNS as usual, because it will just gap up on open and take off from there. IMO.
As I've said before though, the LFD aspect is a partnership with a USA based company. I think it's entirely possible news will be released simultaneously so I think a lunchtime/early afternoon RNS is just as likely as a 7am RNS.
I know the partnership with Cytiva was announced in a 7am RNS, however that wasn't big news for a monster of a company like them. However, a working LFD will be massive news for both companies so I can't see one releasing news without the other.
Thanks. I wouldn’t imagine a rookie investor
even knows what a stop loss is. Furthermore, if this were the case, they could pretty much devalue every stock. Agree there might be an element of this, but I think sentiment is driving this down in the same way that is was driven up. I’m confident for the end game.
Zoom, buys far outweighed sells yesterday ( a lot)... some back ground selling was deffo happening.
Stop losses were triggered and some decided to cash in.
It's all good!
At £3... they will be sat wondering about how they've missed it... it happens... we've all been there
Still don’t get it. No one is forced to sell.
The stock price decreases when selling demand is high & increases when buying demand is high. Can you substantiate the claim’s of MM collecting shares. Genuinely never understood this. Personally, I think people are selling due to a ‘perceived’ delay with news.
I second RapidSequence YouTube recommendation, well worth a listen.
Thanks guys. It’s like having to learn a new language this! “Filling orders”, “stop losses”- I know this word, “spikes” etc. I might as well be a child when it comes to learning this side of investment. Can someone explain how does a MM actually push the price down? What’s the process for them to do so?
Canute the MMs cannot see the stop losses as that would require them to have access to private accounts and would be a breach of privacy on the part of brokers. However they know they must be out there and will use drops to trigger them. If the drop isn’t big enough to trigger what they need they will let it rise and drop again - exactly as we have seen over past few days. They make their money trading to big buyers and not from small private investors, so they will try and fill an order at a price the buyer is willing to pay and will do what they can to fulfil it.
Through discussions with other market participants (fellow market makers, brokers, etc.) he understands that the recent increase in demand for shares is due to an anticipated news release from the company that the investment community overall believes will be positive. He therefore appreciates that it would be sensible to hold a greater number of shares going into this period than he would be accustomed to, so that were the news to indeed be positive, he would not be required to push the bid up so aggressively and create a spike in the process. Accordingly, during trading when a number of sells hit his order book, the market maker – having spotted that a large block of shares is available at a lower price through the hitting of a ‘stop loss’ (an instrument used by an investor to automatically sell shares once the share price hits a certain price, thereby limiting the investor’s loss) – duly drops the bid (on occasions significantly) more than would be considered necessary to balance the book. The stop loss order is executed, the investor is knocked out of his position, and the market maker now has a large supply of cheap shares that he can sell at a tidy profit to investors when the anticipated good news does arrive.
@Richob thanks for the post. I signed up to L2 recently and am trying to learn orders etc. I also don’t totally understand how MM works. I get they can see stop losses. That’s all I know. So they see the stop loss then force sp down (not sure how they do that), then if you can see these orders they wait to sell and then make massive profit having bought low by triggering stop losses - is this correct? If someone can give me a brief lesson tips on this that would be great :) gotta learn somehow