stock prices do not move at random. They are highly controlled. And anyone can control the price of any stock. Yes, anyone.
And any stock. If you have the money. The truth, the whole truth and nothing but the truth is that whoever has the money and
is willing to put that money to work...gets to say whether a stock goes up or down. Just keep buying to swallow every seller in
the SELL queue and you will clear levels after levels of sellers and the price will rise. As the price rises, you will also sell those
lots which were bought lower to take profits. But you will keep buying at the same time and each time you clear sellers in the
SELL queue, the price rises even higher thereby enabling you to keep selling those lots bought lower. As you have the money,
you can keep buying. As the price rises, you sell too to lessen your risk and to book profits. As long as the buying momentum
is still there and you are able to suck in enough retail participation to feed your game, you keep repeating the process of buying
up the price so that you can sell your lots bought lower to retail traders who chase the price hoping to hitch a ride on you. Then
one fine day, there will come a point where you have enough of the game and you dont want to push anymore. That' s when you
slow down your buying to just enough to keep the price up so that you can unload what' s left of your holdings. When you have
completed your distribution, you quietly leave the scene leaving retail traders who are left holding a crying baby to fight it out
amongst themselves. If I want to play from the SHORT side, I do exactly the same thing but in the opposite direction. I SHORT
SELL the stock and hammer it down which will create fear and panic and force many weak holders to dump their stocks. Some
holders will throw to the buyers. Some will queue to sell and follow the price down as the stock falls. As I hammer the price down
by shortselling, I will buy too to cover my SHORTs done at higher levels. Then when I am done with the game, I cover all my
outstanding SHORT positions and leave the scene quietly leaving retail traders maimed and wounded. When I am at it, I reign
becoz I am the one who is willing to put the most money to work on that stock. So I get to say whether that stock rises or falls.
No retail player can take me on. That' s why I always win. Unless.... someone else who is also in this business is eyeing my
stock and he wants to go in the opposite direction and he has lots lots lots more money than me. Then he gets to say whether
the stock goes up or down and he gets to win.
That' s how the stock market works. He who puts the most money to work gets to say which way the stock goes. We, as small
frys... can only try to figure out which way the big guy is going and trade on the same side as him. Never against him. But at the
same time, we must also not get greedy and end up being so blinded by the sheer momentum of the stock that we end up being
the last person to carry the crying baby.
That, my friend, is the name of the game. And it happens all the time everywhere in every stock market in the world. They are not
rogues. They are friends. If not for such people, stock prices will barely move and the market will be very, very quiet. So quiet that
even when a mosquito farts, we can hear
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