Discussion in 'Trading' started by kensmith, Aug 26, 2001.

  1. kensmith


    I'm always interested in how larger traders play a share so that I can sometimes move inbetween and make a few dollars.
    Here's an example.


    Played SNPS 23 August. INCA pushed it down with others in pre market to about $43, and then rode it up until lunchtime to around $49. Fascinating watching the player using INCA, sometimes switching to ISLD or using both. As the price was rising would keep on the bid with 10s or 50s. If the price started to move down, would put in a 100 on the bid, which stopped the tank. Smaller ISLD players fathomed this out and started opening long positions with INCA. There was always a smaller INCA price on the ask. Probably playing both long/short positions. At times INCA would ease back 20 cents on the bid to see what would happen. As soon as the S&P futures moved up, straight back on the inside bid, pushing the price higher. At lunchtime the INCA player became not as aggressive in tactics, I would presume it was the same firm but the initial player had gone to lunch, leaving some one else to trade. Afternoon the price started to fall with less support from INCA, instead of 10s there were 1s or 4s on the bid, with 10s or 20s on the ask. Smaller ISLD players were still buying on the bid with INCA until they realised that plan no longer worked, some took longer to think it out. As the price dropped INCA would still go on the inside bid, then drop back 20 or 30 cents, forcing the price down with large asks.

    The INCA player was one of the fastest I've ever seen, from the hits going through time & sales, probably using about $1- $5mil to trade.
    I'm glad there is room for small players, like myself, to move in-between and make a few dollars.

    When the bad news has filtered out, the INCA player will probably find other stocks to aggressively trade on good/bad news. Perhaps, as the years go on, I will be able to recognise different players by their trading styles.

  2. sallyboy

    sallyboy Guest

    First, this post should be in the "Trading" room, not under "Current Events/Rule Changes". You might get more commentary. :)

    Second, I too have seen this type of behavior and have figured that it's probably a market maker pushing the stock around to their advantage knowing that there are no institutional orders around. Or it could be a big independent trader pushing it around. Who knows. But I tell that when that kind of thing happens, you really can't do anything but try and profit off it. It would be nice though to have deeper pockets to stop it dead in its tracks and see what happens! :D