Member Info for investor33

Also, the MMs further attempt to minimise risk through building up any inventory which they may possess in a given stock through buying at the lowest possible prices, so if later a large supply/demand imbalance develops they are more likely to make profits rather than losses when they make their principal trades. Any wholesaler will want to stock his warehouse at the lowest possible prices so that he can profit if there is a sudden surge in demand for the products that he or she stocks.

The obvious place for the MMs to accumulate in order to stock their inventories is clearly at the bottom of a well defined persistent price range. So that's another reason why range bound price action benefits the MMs.

People obsess ad infinitum fundamentals. yet hardly ever study the historical price action. Yet ultimately it's the share price which will determine whether anybody makes any profit from this company.

Pull up a Google chart going back 5 years. Get a ruler, and hold it horizontally at the 4p level. You will find that with the exception of the odd short lived spike the price action in that time has been all between 2p and 4p.

The MMs love entrenched price ranges because it's the area of least risk for them. If on the other hand there is a sudden FOMO rally on news which creates a demand/supply imbalance, then their risks increase significantly. For example, If supply suddenly dries up on the bid side during a FOMO surge, then they will have to make principal trades from their own inventories in order to maintain liquidity. This involves increased risk to them.

In a tight range such as we have had now since early Sept, there is lots of short term trader activity going on, as the range with it's obvious support and resistance levels lends itself perfectly to this. Combined with a wide spread, the MMs can make money from this range all day long with minimum risk, as you don't get the large supply and demand imbalances which might require them to maintain liquidity. A tight price range clearly encourages short term trading, and the MMs will very likely also be trading their own accounts from their trading desks staffed by eager bonus driven traders. Plus from their own accounts the MMs can buy on the bid from traders and retail investors, and then quickly flip the shares through selling them on the ask.

So the fact is that the price action with this share is historically all about ranges, and to break out of the current range is not something that the MMs will be keen to see happen, as then you will get FOMO setting in, resulting in demand on the ask shooting up and supply on the bid side plummeting suddenly. Only when prices have spiked up quite a bit will you start to see supply coming in again on the bid, as retail investors take profit or get out around breakeven. Until that point happens, the MMs will have to dip into their inventories with principal trades in order to meet the excessive demand on the ask.

Overner ; it doesn't matter what happens on IG, as with derivatives you are not dealing with the underlying asset. So if shorting you are not actually borrowing the actual shares.

Proquo ; " I think we have had a combination of placing shares flipped out but for the most part it is just MM's and traders making a margin on a daily basis. Market mechanics given the share's liquidity."

Would you agree that the tight range that we have now been in since the beginning of Sept lends itself perfectly to this kind of activity ?

Yesterday I drew some support and resistance horizontal trend lines on a City Index Matd chart starting from the 4th September, and the share price has since bounced 5 times between the top or bottom of those trendlines. The last two spikes in fact exactly hit the top and bottom of the trend lines.

The question is - when do we break out of the range ?

Proquo : "Absolutely no evidence for the mythical single seller at all. Always has a whiff of the conspiracy theory about it. MM's, traders flipping the more likely explanation. If it has been a single seller these last few months they must have held a massive percentage of the sharesin issue. "

I agree totally. People like WOS and Hamm getting all excited by being able to do a dummy sell of say 1m shares were simply proving that the MMs are looking for retail investor to sell to them on the bid so that they can quickly flip them on to the ask in neat rounded blocks of shares.

Doc ; Exactly. The guy sounds like some kind of chronic narcissist who is trying to set dominate the board through adopting the persona of some kind of all knowing stock market guru. His username gives you an insight into his narcissistic mindset - it has ' vanity ' written all over it.

And yet to date he has always been wrong - spectacularly so just before the raise.

WOS ; unlike a fake like you who begs people to buy just before a raise ( by the way - why did you vanish for a month straight after the raise ? ) there are some highly professional stock market traders out there. I must have watched over 100 free You tube clips of between 30 mins to 1hr each by now by people who really know what they are doing. One has amassed over $1m in day trading profits within the last 30 days.

And how much money have you made from the markets ? Going by your judgement just prior to the raise Mrs WOS probably doesn't do many shopping trips these days....

WOs ; your mythical ' trading courses ' claim has as much substance as your claim to know anything about how the stock market works. What's happened to the ' Miton theory ' now which you borrowed off Doc ? You've suddenly gone quiet now on that pet theory. lol.

Doc ; I suspect that the 1m or so shares that people were excitedly saying yesterday they could sell to the MMs was a case of the MMs saying " thank you, we will take them, flip them straight over to the ask, and then sell them in blocks of 200k. "

And of course what it means is that the bigger the float ( the weight bearing down on the share price ) the higher the volume that is required to make it rise. A heavier aircraft is going to need more power and thrust from the engines to make it climb steeply than a much lighter one.

Actually it shot up as high as 5.5p on 4th Jan 2023 from 1.8p at the start of Dec 2022. It had reached 4.6p by the end of Dec 2022 which no doubt ensured some hefty trader desk Xmas bonuses....

It's worrying that some on here don't even know the difference between slander and libel - makes you wonder whether they ever read or study anything much in life.

Anyway, an interesting analogy which I heard yesterday is that the size of a company's float ( ie the no of shares issued ) is like a weight bearing on the share price. The lower the float the lighter the weight and vice versa. And the volume is the power. So an explosive move up would typically come from a low float stock with very high volume. So all these raises have been like bricks placed on the company's share price. This may explain why many years ago now we once had that explosive move up to 30p or 40p - the float was much lower,, and we suddenly had a lot of volume on some sort of sentiment boost. It didn't last long.

Also, I'm hoping that if the mirroring of the 2022 price action as shown in charts continues, then we may get a sharp move up from 1st December. Back then in 2022 the share price was 1.8p at the end of November, but it suddenly shot up to around 4p by the end of the month. I'm wondering whether the MM trading desk boys had accumulated a lot of shares around the 1.8p mark using the MMs own trading accounts, and then sold a ton at the peak of the spike to FOMO driven retail investors in late Dec/early Jan. It then held around the peak until late January 2023, and then crashed again back down to around 2.5p. I suspect that this rally was all about inflating the 2022 Xmas bonuses for the guys and gals on the trading desks - we might see the same again this December hopefully.

Abzzba filtered now to join Ten blagger. Waste of time both of them.

Everyone listen to a guy who flogs second hand cars in Spain and ' was big in oil once. ' Now that is Walter Mitty stuff.

Abzzba : "Adw, could be your not capable of spelling "

Could be you're not capable of grammar. It's " you're " not " your ."

Idiot.

Adw ; glad you can't spell his daft username as well :-) His other username " Margaritas " on here sounds more normal.

Didn't he say that he sells second hand cars in Spain ?

Laughably he's just given the game away with his " Walter Mitty " comment, given that " Margaritas " made exactly the same comment. Clearly he wouldn't get a job at MI5, so he'd better stick to his second hand car dealing instead....

Abzzba ; I'm also more than happy to take the ' liar ' allegations from either of your two accounts on here into real life.

Abzzba ; as matter of interest why did you create this new username of " Margaritas ? "

You need to go back to selling second hand cars in Spain by the sounds of it.

Or maybe it's Tenpole Tudor with another username ?

"abbzba " is the correct spelling having just rechecked, though frankly I don't car whether I spell his username correctly.