You were doing fine, right up too
............. but let's be clear, investors bare some great influence as well, after all, investors are the market.
You confuse the issue with too much clutter. What happens when the investors are positive and the market is negative? Stocks can still go down and do all the time, thats why you get ZEN like situations. ie- stock is pumped as if its worth $30 why is it at $1.00?
ZEN people think that ZEN stock is at $1.25 today because sentiment is swinging, thats partially true but not the real reason for the rise.
This is where you go astray on the above statement. Investors do not move the stock, bank traders, fund managers, and money managers move the stock. None of them have to be "Investors". They can and usually are short term players wanting to augment a lousy month.
So you get the news AE is in London. Market hears that and says...we may be able to play this for 20c. So they start moving the market up. ZEN people on boards then get excited and do the "big news coming" and Investors, the one you refer too, then buy the short term bank traders, fund and money managers shares and the move really had nothing to do with AE in London. It had a lot to do with the fact they could generate some volume because of the story at the moment. So shortly the stock will drift back to sub $1.00 again.
Investors can be positive, and shorters or market can be negative at the sametime. Its what creates the market, swing sentiment can trap a long or short. But, to have a swing in sentiment you have to appear to be doing lots of things that "could swing sentiment".
If your focus is to save money and penny pinch, then the market knows that and can work sentiment with ease because they know nothing comes of not spending money. So if you advertise you are penny pinching then you are susceptible too sentiment swings and a lousy market sentiment.
So Investors as you call them see a stock that is dropping or not moving upward and voice some frustration. ie. When you see a few ZENners say something about a lousy stock price you immediately republish the revelation.
When you do, the same people that you call Investors, that you sometimes insist are selling it down, now appear (money managers, traders, and fund managers) and try to pick up some money on the downside for a few ticks.
You may say, well they acted on the Investor Sentiment, thats true, but where did the Sentiment come from? Generally all of the market manipulations up or down by the same group can be traced to a lack of awareness of shareprice and impacts News can or cannot have on that shareprice. I could literally write a book about this because I have spent 30+ years researching and watching how stocks react to sentiment.
The worst thing Management can do in this situation is to have the market understand that you are no threat to what "it wants to do". If you keep the market guessing you control the market. If you are not interfering with what the market wants to do, then the market always wins.
There is a theory in the market. Spending a million dollars too toot your horn, can generate 10-30 times that in market cap. When the market is unaware of when the next toot is to come out, they avoid shorting you. Investors that are not sure when the next toot is to come out will not sell because they will be afraid to be out for any really good news. This leaves investors satisfied and potential market manipulators on their toes.
That is Nirvana for a Stock |
