Newbie Questions about Market Manipulation

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PumpedAndDumped

I am very new to active trading. I am starting very small and learning as quickly as I can, but I have been seeing something that I am having trouble understanding. This probably more of a rant than anything, but I have recently researched and picked a couple of stocks that for all the fundamentals that I can understand and apply should be doing well. However, they just seem to be stuck in neutral.
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They’re $HERO and $TWGP. HERO in particular should be moving. I bought it very close to the bottom (so far). The company is profitable, they have good cash flow, future business prospects are good and there has been a bunch of good press recently about what a great value they’re. And with all that the price just bounces around about a $.10 range. I have read that short interests could be to blame.
However, once the price is down what benefit to shorts would there be in keeping the price flat?
In the case of TWGP, now I am not as confident of this stock's prospects, but it should still be a good value. This morning I was watching Level2 on eTrade Pro and TWGP’s price was starting to tick upward. Just when it looked like a nice uptrend was going to form and the price was at $2.79 someone out of the blue dumped 1000 shares at $2.73. After that the price just dropped and has been in the low $2.70’s ever since. Does that sound like possible manipulation?
Can some old pros give me some insights how this is done and how to either spot it, avoid it or even benefit from it?
 
as for $HERO, if you think the company has good future business prospects, but the price remains flat, maybe the market just thinks otherwise? i wouldn't put too much value on one single perception :)
 
PumpedAndDumped said:
I am very new to active trading. I am starting very small and learning as quickly as I can, but I have been seeing something that I am having trouble understanding. This probably more of a rant than anything, but I have recently researched and picked a couple of stocks that for all the fundamentals that I can understand and apply should be doing well. However, they just seem to be stuck in neutral.
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Price reflects what the majority of market participants think. Both of these stocks are in major downtrends. The institutional traders and investors who move price don't want these stocks.

Nearly every experienced trader told me to learn to trade with the trend when I was a beginner and I didn't listen to them and lost tens of thousands of dollars because price was not conforming to my opinion of what should be happening based on my interpretation of fundamentals.

You and I do not move price. But if we go along for the rides that the big players are running, we make money more often than not.

Learn how to trade price action in whatever holding period you prefer (months, weeks, days, hours or minutes). dbphoenix is running good threads about price action trading. Pristine offers solid education for a fee. Babypips web site has an entire trading school that covers all sorts of things.

Good luck
 
NoDoji said:
Price reflects what the majority of market participants think. Both of these stocks are in major downtrends. The institutional traders and investors who move price don't want these stocks.

Nearly every experienced trader told me to learn to trade with the trend when I was a beginner and I didn't listen to them and lost tens of thousands of dollars because price was not conforming to my opinion of what should be happening based on my interpretation of fundamentals.

You and I do not move price. But if we go along for the rides that the big players are running, we make money more often than not.

Learn how to trade price action in whatever holding period you prefer (months, weeks, days, hours or minutes). dbphoenix is running good threads about price action trading. Pristine offers solid education for a fee. Babypips web site has an entire trading school that covers all sorts of things.

Good luck
More...

Thanks! I have a lot to learn!
 
PumpedAndDumped said:
HERO in particular should be moving. I bought it very close to the bottom (so far). The company is profitable, they have good cash flow, future business prospects are good and there has been a bunch of good press recently about what a great value they’re. And with all that the price just bounces around about a $.10 range. I have read that short interests could be to blame.
More...


1. The stock price will not move up just because you think it should move up. If there are thousands of other traders (or several traders with big money) who think in the same way as you then they may create the new bullish demand and push this stock up by buying it.

2. keep in mind that this stock did not recovered much from the 2008 crash

3. You cannot be sure that you bought at the bottom. In June of 2012 this stock was much lower.

4. Current sentiment is still negative and traders are still selling this stock. However, from the end of January 2014 we see big volume which could be explain as many bullish trading are jumping into by buying from bearish traders. however at this point there are no signs that the pressure of bulls is going to overcome.

5. Personally HERO could be a good buy, but it could be an early buy as well. It still may go down. If it drop more you may consider buying again to average you position.
 
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