rickydicky16 Dec 2011 21:16
Hello rickydicky, how are you doing. I have read your post below and not sure I can give you an informed answer. If I am understanding you correctly, then, well,.....each sale or buy is as from the market makers perspective. If I ring up and buy say 10000 shares at 24p it will be reported as such, or SHOULD be. Likewise if I sell 20000 shares at 23.5p it should be reported as such. The mm does not need to state that they have sold me 10000 shares at 24p or bought 20000 shares at 23.5p from me, so you will not get a balance. What is the point of this?, well I guess they may be legally bound to show the transactions carried out. BUT, you will find that not all sales or buys are recorded correctly, for whatever reason they may be the wrong way around!. What is more some dealers will make a transaction in bulk for a no. of their customers at a best price, so you, Lacey and I may buy say 50000 shares between us and they will be grouped together as one and we won't be able to tell one from another. Confused yet?. OK.
So you may get more shares bought than sold on one day and yet the share price falls back, or vice versa. Why?, well, ..... because it can!....and sometimes does!. Oh, don't ask me why rickydicky, it just does!. You just have to accept it I am afraid. What is important at the end of the day is the sp movement, although you would hope more buys than sells would lift the sp.
Another fact, some would say the sp fell today, but don't worry it was on low volume. Let me give you a quote from an investment book. "A broker rang his client and said I have good news and bad news, what would you like first?. The client says, "I'll have the bad news please". The broker says "Your investment that you made at £5 a share is now selling at 50p a share". The client says "and what is the good news?!". The broker says "it fell on low volume!". Now, this isn't meant as a joke, but as a warning. At the end of the day it matters little if the volume is low or high, what matters is the share price. I've read it too many times on the boards here, as a reason to stay optimistic in a falling market.
Although not invested here at present, I will try to help if I can. Also Lacey is a good egg (can I use that expression?) and I am sure will try to answer any questions you may have. Have a good weekend. Regards
CM