Can you manipulate the stock market?

S

short&naked

I have noticed that if the order size is large enough (250,000USD) on a thinly traded stock (intraday), the stock will actually move quite a bit in the direction of your position due to increased demand of a stock with a small float (simple stuff).

Is it possible, however, to create turning points or rallies with well timed entries that other traders buy into? Are there any specific known methods/strategies on this?
 
Quote from short&naked:

I have noticed that if the order size is large enough (250,000USD) on a thinly traded stock (intraday), the stock will actually move quite a bit in the direction of your position due to increased demand of a stock with a small float (simple stuff).

Is it possible, however, to create turning points or rallies with well timed entries that other traders buy into? Are there any specific known methods/strategies on this?
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It happens every day, read some Wycoff.
 
The stock market participants are the most honest and wonderful human beings who would never seek to profit from any unscrupulous trading methods, insider info, dodgy accounting, or deceiptfive reporting.

NOT

But seriously, what keeps the market sort of honest is that all the market participants are all out there trying to do "it" to each other all the time.

Stay away from low cap and thinly traded stocks and you should be able to trade with confidence.
 
Quote from short&naked:

I have noticed that if the order size is large enough (250,000USD) on a thinly traded stock (intraday), the stock will actually move quite a bit in the direction of your position due to increased demand of a stock with a small float (simple stuff).

Is it possible, however, to create turning points or rallies with well timed entries that other traders buy into? Are there any specific known methods/strategies on this?
More...

Post some large size and see what happens.
 
Imo, with about 90k and an equity with short story that trades under $10 you could create a trend using different time frames buying and selling.
 
I know that it happens. My question pertained to who it can be done. This is a very different issue than charting. I was basically asking if there is a technique to manipulating thinly traded stocks, i.e. causing rallies than last, etc.
 
Quote from womblevader:


Stay away from low cap and thinly traded stocks and you should be able to trade with confidence. [/B]
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Interestingly some of these have the strongest long term trends: Take MATW for example. Strong, mega trend, but very lightly traded on an intra-day level.
 
Quote from short&naked:

....Is it possible, however, to create turning points or rallies with well timed entries that other traders buy into? Are there any specific known methods/strategies on this?
More...

I can speak about one method I used to participate in while risking very little capital pre-market.

First thing you need to find is a cheap stock - less than .50/share worked good - under .25 worked best...........the more money you're willing to risk, the higher the stock price.

You should have level 2 or a good market depth to do this.

Then the bid ask spread needs to be only reasonably tight.......the tighter the better.

Next, hopefully there is a nice big order sitting at the ask - the bigger the order at the ask and the cheaper the stock, the better this worked.

Now buy the ask and see if the volume alert attracts other traders by watching level 2. (Here is where trading a very cheap stock helps because you could buy 50k shares of a .10 stock risking $1k, but the 50k shares will set off volume alerts, often attracting other traders)

You may want to buy the ask a few times and throw in a few big bid orders at the same time - - - this can give the illusion to the unknowing traders that "someone knows something".

Meanwhile, you should probably have a few sell orders in so you can sell to the unknowing at a higher price.

Basically, all you are doing is bidding the stock higher, selling to those buying into the volume alert..........so you need to really watch what you are doing and sell for a profit - if you wait too long, the unknowing turn into the unbelieving and you'll lose you're ass lol.

Steve
 
Now multiply that size by a million and you could be working at one of the big trading houses.

Quote from NoProblem:

I can speak about one method I used to participate in while risking very little capital pre-market.

First thing you need to find is a cheap stock - less than .50/share worked good - under .25 worked best...........the more money you're willing to risk, the higher the stock price.

You should have level 2 or a good market depth to do this.

Then the bid ask spread needs to be only reasonably tight.......the tighter the better.

Next, hopefully there is a nice big order sitting at the ask - the bigger the order at the ask and the cheaper the stock, the better this worked.

Now buy the ask and see if the volume alert attracts other traders by watching level 2. (Here is where trading a very cheap stock helps because you could buy 50k shares of a .10 stock risking $1k, but the 50k shares will set off volume alerts, often attracting other traders)

You may want to buy the ask a few times and throw in a few big bid orders at the same time - - - this can give the illusion to the unknowing traders that "someone knows something".

Meanwhile, you should probably have a few sell orders in so you can sell to the unknowing at a higher price.

Basically, all you are doing is bidding the stock higher, selling to those buying into the volume alert..........so you need to really watch what you are doing and sell for a profit - if you wait too long, the unknowing turn into the unbelieving and you'll lose you're ass lol.

Steve
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