I can't believe what I just did - and it worked!!!

Discussion in 'Strategy Development' started by SwingOutOn5, Jan 25, 2006.

  1. Alright, I did this on ESV just now, so you can check the T&S

    I want to know your opinion if what I did had an affect on the price action.

    I was in ESV at around 53.54 w/ 100 shares. It was in a channel, so I bought 100 more at the bottom of the channel. 20 minutes later it dropped to about .05. I bought at the ask in 100 share to 200 share lots. It didn't want to move above .09, but I figured, what the heck! Well, I kept at it, and boom, it jumps to .22! By this time I was averaged in at about .13 w/ about 1200 shares or so.

    I know ESV plays about 3M in volume every day, but volume during this time was extremely light. The breakdown to .05 happened suddenly w/ very little volume.

    I am not one to average down, but these past couple of days I have been salvaging bad trades on down spikes by buying at the bottom (or nearly) and selling for less than the price at the original entry.

    Thoughts? Any more info needed? This took place between 1427 and 1429.29 today
     
  2. Ask yourself what you would have done had it continued to drop.
    If you didn't have a plan, you will blow your account eventually.
     
  3. Yeah.. what if that spike up never came?

    What about the missed opportunities to go short, and then the opportunity to go long.

    Averaging down for the sake of not taking a loss is a losing strategy.

    I know. I got battle scars to prove it.
     
  4. What goes around comes around.
     
  5. Inverted risk/reward... eventual blow up in the near future.

    Get an edge before you bet big.
     
  6. yeah, thanks, that's not what I'm talking about. my stop was actually pattern based at .99 on the original position

    I'm asking if you think that my action of buying at the ask many times over effected the upwards price action
     
  7. ig0r

    ig0r

    What kind of question is that? When you buy, price goes up. If someone else needed to buy as well, and the offers dried up, they may have been forced to bid it higher.
     
  8. let me be a little more specific. I've heard of groups of traders ganging up on the ask to pump it up, but I have never really seen it in action. I was really hoping one of the tape readers could take a look, and give me some insight.

    It makes me wonder how easy it is to manipulate (and I say the world gingerly). How much would you say that I just got lucky vs. I did what I said I did.

    Now that I'm watching it, the price is roughly the same as it has been in a channel. Maybe a large stop was put just below .30 and it got filled at the market. The recovery put the price where it would have been w/o the large market order, maybe....???
     
  9. MR.NBBO

    MR.NBBO

    Hundred share lots won't move it.

    The specialist will also crush you if he sees a bunch of jokers jacking with his stock, be careful.
     
  10. thanks. Let's assume that the offers were not hidden. I met the size at the ask as well as the price.... what then?

    This happened maybe twice, btw.
     
    #10     Jan 25, 2006