posted
I have had this question on previous occasions, and today again with STOY, GTEI, NGMC, and GJRC: how does 1 or 2k in volume cause these companies to have such large gains? For example, STOY shows 100,000% gain with 100 shares traded. What in the world is going on there? The naive part of my question is: why couldn't traders jump in there and make a boatload if it's moving like that on such low volume?
quote:Originally posted by andrewunknown: I have had this question on previous occasions, and today again with STOY, GTEI, NGMC, and GJRC: how does 1 or 2k in volume cause these companies to have such large gains? For example, STOY shows 100,000% gain with 100 shares traded. What in the world is going on there? The naive part of my question is: why couldn't traders jump in there and make a boatload if it's moving like that on such low volume?
TIA
Andrew Unknown
THERE HAS TO BE A BUYER FOR EVERY SHARE SOLD. THE STOCK CAN BE WORTH A MILLION DOLLARS AND BE WORTHLESS IF THERE IS NO ONE INTERESTED IN BUYING IT. VOLUME IS KEY TO SUCCESSFUL TRADING. IMHO
THERE ARE NO SILLY QUESTIONS!!
------------------ DIANA
[This message has been edited by realityinc21 (edited January 05, 2005).]
posted
I agree - I just wonder if two or more traders could work together to produce gains....
Posts: 228 | From: Ohio | Registered: Jan 2005
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posted
Also too those stocks that show those kinda gains might only have less than a million shares in the float.
Posts: 487 | From: Northeast Ohio | Registered: Oct 2004
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posted
Hmm...thanks for the responses. Obviously I didn't think this through much before I posted. You've all been very gracious. : )
Say two traders went back and forth (if it would even work out that way) - couldn't they split the profit? Of course, that would take one trustworthy partner! Also, if these stocks are gaining 200%+ from a few K traded, then, all other things equal (and I must be missing the nuances, or this would have been exploited already), only a few times that (say 10k traded total, or 2K back and forth twice) would reproduce that gain.
Again, I'm sure it can't work (at least, I think I'm sure) it can't work - but fun to imagine.
Bob - sorry, what's "painting the tape?" I've read the phrase before, but never much caught one. A new penny investor here.
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