Telling my 8 years of experience in 5 min. A thread on how Stock Market Manipulation is done.
What is Market Manipulation?
It refers to artificial inflation. Also known as price manipulation or stock manipulation, it involves the literal manipulation of the financial market for personal gain. It means influencing the behavior of securities with the intention of doing so.
It refers to artificial inflation. Also known as price manipulation or stock manipulation, it involves the literal manipulation of the financial market for personal gain. It means influencing the behavior of securities with the intention of doing so.
Market manipulation techniques include spreading false information through online channels that are often visited by investors. The barrage of bad information, when combined with market signals that seem legitimate on the surface, can encourage traders to execute a given trade.
One of the ways of inflating the price of a security is by placing an equal number of buy and sell orders for the same security simultaneously, but by using different brokers. Thus, the orders cancel each other out.
The large volume of orders executed gives an investor the impression that there is an increased interest in the security.This convinces them of the possibility of future price appreciation, then they buy that security,which ultimately ends up pushing the actual stock price higher
There are two major techniques of market manipulation: pump and dump, and poop and scoop.
1⃣ Pump and Dump :-
Pump and dump is a manipulation technique that is used frequently in order to inflate the price of security artificially. The manipulator then sells out, and followers are left with an overvalued security. This works on stocks with micromarket capitalization.
Pump and dump is a manipulation technique that is used frequently in order to inflate the price of security artificially. The manipulator then sells out, and followers are left with an overvalued security. This works on stocks with micromarket capitalization.
2⃣ Poop and Scoop :-
The poop and scoop technique is not as frequently used as the pump and dump. Here, the price of the stock of a medium or large-cap company is artificially deflated. Once it happens, the manipulator buys the undervalued shares, thus making a profit.
The poop and scoop technique is not as frequently used as the pump and dump. Here, the price of the stock of a medium or large-cap company is artificially deflated. Once it happens, the manipulator buys the undervalued shares, thus making a profit.
Therefore , in this thread, we have tried to understand how Stock Market Manipulation works.
I hope you all learn something new today. I post such threads every week.
Follow me for regular stock market learning.
#Gann #StockMarket #trading
I hope you all learn something new today. I post such threads every week.
Follow me for regular stock market learning.
#Gann #StockMarket #trading
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