market manipulation is there really difference?

M

mute9003

there is alot pf parroting on youtube when ewatching trading videos(but its free)

people say oh the penny stocks are heavily manipulated by forums pampers etc.
its easier to manipulate penny stocks blah blah

then you move up to the "meat of the market" the favorites 5-50 dollar stonks
they are manipulated by smaller trading firms and many individual players with enough capital and trading "groups" and chatrooms where a group of pro traders manipulate the stocks...

then you move up to the baller status stonks. and they are manipulated by the hedge funds and the governments and the aliens and planet allignment etc..


with that said
can anyone explain to me what the difference is between trading certain priced stocks?

because from what i see so far is
everyone cries about penny stocks being unpredictable.
a chatroom pumper can move the stock price easily... ok
so can a group of traders in 5-50 dollar range
so can a hedge funds in the baller range just as easily and just as unpredictable
 
It's not about the price per share, it's about the volatility of what your buying. You can buy a 1 cent stock that has 5% moves, or buy a 10,000 stock that has 50% moves. It's all about the volatility. And with volatility comes manipulation. Which manipulation can work with you.

But you have to realize is there's a reason why stocks are priced less than others. And the cheaper they are the more riskier they can be. A well reputable stock like Amazon is going to be priced higher than pennies, because it's a well established company, so your money is going to be safer with that stock, but it won't have as much volatility as a new stock hitting the market. And if you buy into a new stock, it's going to be more risky, but it can be more rewarding since the volatility will be higher. It's up to you.

I personally wouldn't buy anything unless I know there is some huge potential behind it. When you get into these penny stocks, you don't know what they're going to do.
 
mute9003 said:
so a hedgefund cant just dump amazon stock like chatrooms do with penny stocks
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They can, but it would take a large amount of money, because amazon has more volume than most penny stocks. A small hedgefund with limited amounts of money probably wouldn't even put a dent with amazon.
 
Powerbacon said:
The entire market and every asset is manipulated. It's become part of the game. You're trading against Algos all day regardless of asset and float.
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tricky part is sometimes it's in play and sometimes it's not - manipulation that is.

you can't loose your head if you get caught up in it, else go broke.
 
Hedgefunds on average have enough money to sway the stock price.
Why else would they be called market makers


So before this derails
What im asking is why do people feel like there is a difference between penny stocks being manipulated and big money manipulation at the end of the day its still same thing just different price range.
 
MarkBrown said:
tricky part is sometimes it's in play and sometimes it's not - manipulation that is.

you can't loose your head if you get caught up in it, else go broke.
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It's a matter of knowing how they work. The more liquid the asset the more there are. Stocks like TSLA, AAPL, and even currencies like EURUSD are chock full of them. That's why they don't move much unless the market makers/Algos pull their liquidity. They're the reason why when you place an order the price turns against you - even more so if you're on the wrong side. The algos are programmed in different ways as well. They hunt, they probe, they campaign. They even are programmed to manipulate the other algos to achieve a desired result. The institutions deploying the algos have the understanding of market liquidity that the average or even experienced trader doesn't know. Gone are the days of auction market theory and matching longs and shorts...those are yesterday's markets.
 
Different players and different reasons. Think of it this way, any shop has a quiver of ways to make money. Question is, is it enough money to bother with, are there better places, who is doing it, the veterans or the interns, how ripe are the opportunities now versus later.

So in the details you will find the specifics. And in those specifics you will find which are action-able and which are not.

Penny stocks take small amount of funds to move the price. But also don't have much "meat on the bone" either. It is a matter of $/effort/results.

So again, generalization, rarely help you trading and are rarely actionable.
 
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