Stock market is one of the trickiest businesses in the world to make money quickly. High frequency traders or punters are trying hard to fool small investors. You may find shocking trading activities of punters to fool investors.
These activities are usually designed to shake strong stocks from weak hands either emotionally or technically. You can sustain & survive in markets only if you are ahead of others.
You need to create ideal portfolios that adapt to market changes. But, you also need to avoid emotional & technical shocks that punters or high frequency traders give to stocks from time-to-time. Here are 10 shocking trading activities of punters or speculators to fool retail traders in share markets:
[You can also watch an exciting video on this post from GetUpWise channel on YouTube.]
(1) Secretly Trading Shares Using Disclosed Quantity
It is one of the trickiest & shocking trading activities of punters to fool investors. Disclosed quantity is an order in which only a part of total order quantity is disclosed to the markets.
The next part of the order is automatically released only after the previous order is executed. For example, a big investor is willing to buy 200000 shares of a script by entering disclosed quantity as 20000.
Now, order visible to other traders will only of 20000 shares as soon as this amount is executed you will again see an order of 20000 shares. This process will continue until all 200000 shares are executed.
These secret orders are usually placed to hide the total quantity from small investors. These high-frequency traders prefer to choose disclosed quantity almost equivalent to that of small investors order size.
You should try to analyze such transactions by looking towards total traded quantity for that period. If you can observe these signals for buying, you may also go for the same provided other factors are also considered else ignore them.
- Punters Fooling Investor: Shutterstock