Price movement by chatroom calls

Discussion in 'Trading' started by ProTrader1, Dec 14, 2001.

  1. Can chatroom calls move liquid stocks?

    At least several of us in this particular chatroom each trade 3000 to 5000 shares when a call is made in BRCM, BRCD, QLGC, etc, with many more (perhaps 20, 30 or 40 or more) trading between 100 and 1000 each.

    Could this create enough buying pressure in and of itself to actually move these stocks 10, 20 cents or more?

    Can these calls alone move the price around somewhat?
  2. Pro..

    im sure they can move it a little.. but BRCM and BRCD are usually pretty thick.. QLGC could probly get knocked around a little easier.. but i doubt your chat room has much real impact on the stock..

  3. gh1


    You better hope not -- who are you going to sell to/buy from when you want out? Each other?

    If your demand/supply moves the issue, what happens when you take the demand away?

  4. gh1,

    yeah, greg & qwik, that's what I was thinking.... Are we playing against each other in any significant way? :confused:
  5. Jeffo


    I remember back in the crazy bull days there were some gurus on SI who would pump a stock and move it because of a very large following but they were almost always small flooat stocks. I highly doubt a chatroom could move a stock like BRCD QLGC etc. although that's just an uneducated guess. I'm sure there are others who would know better.
  6. Pro..

    well.. all i can suggest is that you understand the setup behind the call in the chat room.. and then dont chase it..

  7. gh1


    Hey Pro:

    i see it this way, you are not going to move a thick stock with 10 to 20k shares! If you think 10 to 20k can move a stock that trades over 10 million a day -- forget about it.

    Now, if you are playing a stock that trades 100k a day -- then you may be "playing against each other". And if that is the case -- be sure you're the first in and the first out!

    However, if someone is making the calls in your chatroom on thin stocks -- my guess is they already have a position and are selling their shares to you guys.

    As the song goes -- nice work if you can get it, and you can get it if you try

  8. Therein lies the secret... FIFO, as they say.
  9. I had serious doubts this would move the big boys much or for very long, but 20K or 30K sales in a few seconds, well I wasn't so sure this wouldn't push it up a little. So the consenus is "no significant influence"?