RE: Nomlungu2 Jul 2019 13:57
C7,
My comments about how I interpret trading volumes is based my my experience trading inside information and sentiment on horse racing markets in South Africa. Most of the bookmakers I dealt with knew that I had inside information from a number of yards and that I commissioned bets on their behalf. When I backed one of their horses the market did not know if a gamble was on or if I was just bluffing to force the price down to be able to lay the horse in question at an unreasonably low price.
I also used to have a much larger cash turnover of small bets than most of my peers which allowed me to judge sentiment and I apply that knowledge gained on betting markets to AIM shares that have large spreads. It does not make me correct though, but it does help me stay away from shares that I am interested in but seem overvalued to me / identify when they are undervalued.
I had been planning a large SCLP buy at around 3p but, whilst the share price got close to my target in early May, my buy was not triggered and I have missed out on the current upturn. Some I win, some I lose.