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Technology Stocks : Newbridge Networks
NN 13.85+6.9%Nov 25 3:59 PM EST

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To: Doug who wrote (15870)12/15/1999 8:46:00 PM
From: Doug  Read Replies (1) of 18016
 
Price Movements:

I am trying to understand the mechanics of price movements. This is what I have observed.

a: Price fluctuations are not decided by small
value trades or small Investors.

b: In the case of big volume trades, the Parties negotiate outside the xchange and inform the M&M that they would like to BUY and SELL at a given price. If the last trade is higher or lower, the M&M walks the price up or down by making a few trades towards the agreed price. Once the agreed price is reached, the big volume trades are made and the market continues at that level.

The small Investor should buy and sell just behind a large trade to get the best price of the hour.

Any further observations are welcome.
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