The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
@Sageman ; there is a very strong resistance level at 4.5p which has been touched several times in the last few months. It will need the volume of a positive RNS to punch through this.
Mojito ; It just doesn't work placing stops for these kind of volatile penny shares. Glad you didn't get wiped out with that bit of MM manipulation.
I can't really say that I blame the MMs for that tactic - it's a time honoured technique which works for them. If they tried to accumulate a large quantity of shares in one or two hits the would simply move the price action against themselves. Through creating a rapid and brief downspike and thereby hitting all the stops which they can see, they can buy cheaply just before a big upmove happens.
That's why so many traders using candlesticks on their charts go long based on a hammer candlestick. The longer the wick at the bottom is, the better an indicator it is. This works on lots of different instruments.
Ojay ; lack of supply is why a stock with only a limited no of shares in circulation can massively hike in price very quickly. MMs accumulate their own inventory of shares at as low a price as possible - that's why just before a big move up you often see a ' hammer ' spike down, so as to trigger a load of stop loss sells - which allows the MMs to accumulate suddenly a lot of shares at low prices which they can then sell into the demand of a sudden rally. The MMs have the advantage of seeing where all the stop losses are placed - and they run at them. There was a classic example of that last year on an RNS release, when the price suddenly plunged down in a massive ' hammer ' spike before it suddenly reversed up in a large upspike. Lots of people on here were scratching their heads straight after that happened...
Whoops - 2016 I meant.
Non-Pro ; you might want to consider that in late 2026 the sp rose from 3p to a peak of 38.7p in the space of just 4 days.
And that's why anybody talking about shorting at the moment must be pretty clueless. Or lying. Or totally reckless.
Non-Professional ; I never pay much attention to people who have never understood the difference between ' their ' and ' there. '
Or so called stock market ' traders ' who refer to ' graphs' instead of ' charts...'
@roxy2020 ; Thanks !
Mr Non-Professional ; the fact that you used the term ' graph ' rather than ' chart ' says it all.
No professional trader would ever use the word ' graph ' instead of ' chart. ' If you did, then real pro traders would laugh at you. This tells me that you know as much about charts as I know about Mongolian cuisine. You weren't even able to duplicate the correct word that I had already used in my post.
By the way, has anybody else noticed that if a word is moderated on here, all the capital letters are automatically removed from the post ? Strange...
re mr non-professional ; as with all cons in everyday life, if something is badly written, full of typos with bad grammar, then it's a tell-tale sign of something not being what it seems.
a real professional trader would not waste lots of time posting schadenfreude comments on here, ****ging the company off etc. on the other hand a malicious troll would do just that.
a real trader would be far too busy analysing charts, fundamental data etc for lots of different companies - not hanging around boards which don't influence the share price anyway. a real trader would be watching out for rns releases for lots of different companies on a daily basis, watching the volume etc, and going long or short accordingly over a shortish time frame.
i follow several us traders who are trading several different nasdaq companies on an intraday basis each and every day, and the last thing they would be doing is posting nonsense on a board like this - especially childish personal comments directed at other people just for the sake of enjoying an argument. they are far too busy making serious money, and every minute when they are day trading is vital for them.
Jimithebrush ; I'm just going on relative volume compared to other days since the RNS - so average days. It's 6 x yesterday's volume.
According to the barchart dot com chart, volume today was 6.37m compared to 1.12m yesterday. Somebody mentioned that this rise is on low volume - it doesn't seem that way to me. Maybe there has been a leak?
On the last RNS release volume was 18.5m.
Flatline; Pro said he was ready to short at around 4pish. It may be quite an interesting short squeeze for him then if he does actually trade, which frankly I doubt....
Cybertron ; sports forums are full of nasty trollish male behaviour as well. To give one example, Lewis Hamilton is subject to an unbelievable degree of personal slurs and attacks by an army of F1 sports trolls, not to mention venomous schadenfreude which is often directed at his fans if he has had a poor race weekend.
On here, the usual suspects seem to be mainly motivated by schadenfreude. It might have something to do with what they call the ' dark triad ' of human personality traits...
BP ; if you look back on your previous posts, you clearly enjoy the schadenfreude caused by the discomfort of the LTHs if the share price has dipped even just slightly on a given day. You don't consider their feelings, and it's though you are willing them to lose money presumably in order to make you feel better about losing money on Matd in the past.
From what you have previously said, it sounds like you might have jumped onto an algo driven spike on ' news ' and then sold after it plunged following the spike. If this is what actually happened to you then IMO that's more down to not understanding how these low volume, low cap stocks on Aim work. The share price has been dominated by algo HFT for years now - bouncing off support and resistance levels. Instead though, you just seem to have a pent up resentment towards the company, and therefore to its shareholders as well.
BP ; depends which algo computer generated spike you measure from. Last May it went up to 8p - but all that shows is that HFT produces heavy volume on a news catalyst. Anyway, I was referring to your day by day carping and glee if on tiny volume the share price has dipped slightly. And obviously with a penny share even on very small volume the % move is magnified, even when very few shares are changing hands on a given day.
If the next RNS is favourable, then volume will suddenly go through the roof on that day, and the share price will respond accordingly.
Badprophet ; it's a total waste of time talking about tiny movements in the share price when there is very little volume. What matters is what the share price does next time there is heavy volume.
You may as well study, obsess and comment about a car which can only move a few meters because the fuel tank is virtually empty. What the car's performance will be like will depend on the next time that the tank is filled up.
If you don't understand ABC basics like this then you are in the wrong game.
Professional ; in the near future I intend to intraday trade Nasdaq stocks with high relative volume on a given day, caused by a new release. It's one of the most popular forms of day trading out there. Nasdaq is a million times better than AIM.
I'm waiting for MATD to reach its true value if and when production starts - but I don't intend to do anymore AIM long term investment - it's actually a lot more risky than intraday trading Nasdaq stocks with small floats and high relative volume when news hits. Algo trading is set up to intraday trade when news releases happen for a very good reason - whether the exchange is Aim or Nasdaq.
I may also swing trade some Nasdaq stocks, but otherwise, apart from maybe continuing to hold some high yield dividend stocks such as Legal and General and M&G, I intend to wave goodbye to the LSE and Aim. There's currently a mass flight of funds out of the LSE happening over here anyway due to low valuations and a lack of liquidity, and I think that trend will accelerate. Investors are increasingly pulling their funds out of UK equity funds. Look at Arm or Tui - companies are either delisting over here, or choosing to have their IPOs in Europe or New York.
Fevertree ; Once an RNS is released, the trading desk algos analyse it, and if it seems positive they will jump in before human beings are capable of doing this. Hence the relative volume figures on the day of the release shoot up. There was about 10 times more volume on the day of the last RNS release compared to say yesterday.
The only problem is that when the algo computers decide to make their quick profits and so close their positions, a large wave of supply suddenly hits the market. So to get a long term trend up we need more than mainly computers to be driving the demand side.
Fevertree ; the answer is that some people on here have no idea how these types of low volume stocks work. They have some vague idea in their heads that excitement grows between an RNS, and somehow lots of buyers are jumping in as anticipation grows. The reality is that most days between an RNS are on very low volume, and nothing much happens. These kinds of people never look at volume figures - some could probably not even explain what volume is.