This is my theory, not backtested. Agree or disagree?
Step 1) taking out the stop losses & causing margin calls (note exposure is visible),
Step 2) bringing the stock price back up again to unload a bit to the bottom fishers a bit, before bringing it down further so that the bottom fishers also have a chance to make their donations.
Step 3) doing the same game again with the next group(s) of bottom fishers.
Step 4) When it comes to the big move, making a good % of the move up at the opening or after a scary juncture on the way up, so you can kick yourself afterwards for missing the opportunity of a lifetime.
Step 5) Unloading the bulk once the price is up substantially, when the investor confidence has increased.
Step 1) taking out the stop losses & causing margin calls (note exposure is visible),
Step 2) bringing the stock price back up again to unload a bit to the bottom fishers a bit, before bringing it down further so that the bottom fishers also have a chance to make their donations.
Step 3) doing the same game again with the next group(s) of bottom fishers.
Step 4) When it comes to the big move, making a good % of the move up at the opening or after a scary juncture on the way up, so you can kick yourself afterwards for missing the opportunity of a lifetime.
Step 5) Unloading the bulk once the price is up substantially, when the investor confidence has increased.