Preksha Baid Profile picture
Mar 4 30 tweets 8 min read
Stock Market Manipulation.
All you should know about- How it works?


#StockMarketindia #trading #StockMarket
@sunilgurjar01 @kuttrapali26 #investing
Market manipulation is when someone interferes with the normal course of stock trading or pricing to further their own gain. (2/25)
The idea behind investing in the stock market is simple: you buy shares at a lower price and sell them at a higher price. However, numerous entities in the stock market are capable of manipulation in the stock market. (3/25)
Market manipulation is when someone artificially affects the supply or demand for a security (for example, causing stock prices to rise or to fall dramatically). (4/25)
These entities deceive the uninformed investors and use their investment to increase or decrease the price of securities. The process is called market manipulation. For an investor, it is vital to understand the topic in detail to ensure utmost investment protection. (5/25)
✅Methods Manipulators Use to Manipulate Prices :
✔Wash Trades
Offsetting trades that are placed for the purpose of misleading the market rather than actually acquiring or liquidating stock are called "wash trades".
Wash trades can occur by the same player through two different brokers or as a collusion between a trader and a broker. (7/25)
"Spoofing" is the act of placing fake orders and then cancelling them before they execute.
Investors at large often assess pending buy and sell orders to gauge whether the market is bullish or bearish on a stock for the near term. (8/25)
Spoofing can therefore give these investors the false appearance of a large amount of interest on one side of the market or the other when it isn’t really there. (9/25)
✔Pump and Dumps
This scheme involves a player accumulating a stock position and then issuing unrealistically optimistic comments about the company to attract buyers who will further bid up the price.
The player then sells into the rising stock price to make a profit. (10/25)
Pump and dump schemes are typically implemented on small or microcap stocks, where there is a better chance of impacting the price of the stock with false news and a better chance of attracting retail investors who are more susceptible to that message.(11/25)
✔Painting the Tape
It is a form of market manipulation whereby market players attempt to influence the price of a security by buying and selling it among themselves to create the appearance of substantial trading activity. (12/25)
The goal of painting the tape is to create the illusion of an increased interest in a stock to trick investors into buying shares, which would drive the price higher. (13/25)
✔Brokers and Pledged Shares
It is common industry practice for promoters to pledge their holding to raise loans.
Market manipulators influence the market to reduce the share price, resulting in decreasing the total price of pledged shares. (14/25)
With the shares losing their value, promoters are forced to make up for lost collateral.
Since it is an indication that the lender may dumb the shares if the margin is not met, the investors start to dump shares in a panic, further lowering the share price. (15/25)
✔Short and Distort:
In this type of market manipulation, the bears (who make profits by short selling) target a stock that has been increasing its price steadily. (16/25)
They take short positions in the stock to increase the share price artificially and follow it by spreading negative news about the company.
This creates an unfavourable perspective for investors who dump the shares to cut their losses. (17/25)
It rapidly decreases the share price, allowing the short-selling manipulators to make huge profits.(18/25)
✔Bear Raids
A player takes a short position in a stock and then issues negative or alarming comments on the stock which are meant to induce shareholders to panic out of their positions, thereby lowering the price of the stock. (19/25)
✅Example of Market Manipulation
➡In 2019, the Securities and Exchange Board of India barred 12 entities for 4 years from trading in the securities market as they were found guilty of manipulating the share price of Ram Minerals and Chemicals Ltd.(20/25)
According to SEBI, the entities executed a large number of trades to match the price of the prevailing buy orders.
The buy orders were placed at a price higher than the previous traded price. (21/25)
Therefore, the manipulated orders increased the company's share price and resulted in misleading the investors. (22/25)
➡ 02-March-2023 : SEBI barred 55 entities, including actors Arshad Warsi and his wife Maria Goretti, from the securities market for alleged price manipulation through YouTube, and subsequently, offloading the inflated shares of Sadhna Broadcast and Sharpline Broadcast.(23/25)
✅At the end
Stock market manipulation is illegal, and the entities are charged with civil lawsuits and bans.
However, as they are difficult to detect, it is important for every investor to not fall for such market manipulation techniques. (24/25)
With the knowledge of what market manipulation is, you can better analyse your trades and ensure that you are not being manipulated by market manipulators.(25/25)
♥If you found this thread useful, please RT the first tweet & follow @itsprekshaBaid for more useful threads.🔁
A Thread to knowthe difference : Mutual Fund vs. ETFs👇

A Thread to: learn About a Bull Flag Pattern.👇
A Thread to learn : Simple range breakout strategy 👇
A Thread to learn : Fibonacci Retracement and how I use this tool in with Supply & Demand levels? 👇

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Preksha Baid

Preksha Baid Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @itsprekshaBaid

Feb 25
Mutual Fund vs. ETFs

What is the difference?
Which one to choose?


#StockMarketindia #trading #StockMarket
@sunilgurjar01 @kuttrapali26
There are various ways of investing, and two of the most popular are mutual funds and Exchange-Traded Funds (ETFs).
Both are pooled funds that allow investors to access professionally managed funds that offer diversification in a wide variety of asset classes and industries.2/20
MFs includes stocks, bonds, and money market funds that are bundled together in a single mutual fund. They offer investors a way to own a diversified portfolio of investments at a lower price which is not possible if they own each instrument separately. (3/20)
Read 24 tweets
Feb 18
All You Should Know About a Bull Flag Pattern.
Simple Way To Use.
No Indicator Used.


#StockMarketindia #trading #StockMarket
@sunilgurjar01 @kuttrapali26 @chartmojo
The bullish flag pattern gets its name because it resembles a flag on a flag pole.
A steep vertical rise in price is followed by a period when the price remains bounded between 2 fairly close, roughly horizontal lines. (2/16)
The pole represents the steep rise in price, and the flag represents the area between the 2 lines. (3/16)
Read 21 tweets
Feb 11
Fibonacci Retracement and how I use this tool in with Supply & Demand levels?


#StockMarketindia #trading #StockMarket @sunilgurjar01 @kuttrapali26
Fibonacci Retracement is an important technical analysis tool used for charting potential Support and Resistance levels on any given chart.
These Fibonacci levels are also extremely important when trying to spot potential reversals within a chart. (2/20)
These Fibonacci levels are based on a numerical sequence created by Leonardo Pisano in the 13th century.
The reason these levels hold weight or are significant, is because so many people use them. (3/20)
Read 22 tweets
Feb 5
Simple Price Action - Swing Trading Strategy. 💚
No Indicator Used.


#StockMarketindia #trading #StockMarket @sunilgurjar01 @kuttrapali26
Step 1:
Identify the stocks which are in short term downtrend phase.

Let’s understand it with the chart of Wipro.
Date: Feb 2021

Here we can see, stock is in short term Correction/ Downtrend. (2/13)
Step 2:
Draw a trendline by connecting all swing highs & wait for the price to break the trendline.

The Trend Line Breakout technique helps you time your entry in a trending market. (3/13)
Read 16 tweets
Jan 25
We traders, always make our trading so complicated & in live market that results into losses.

Simple range breakout strategy to catch Index trades.

A Thread 🧵

#StockMarket #trading @kuttrapali26
✨What is range bound market?
When the stock prices generally flow back and forth near the old highs and then fall back to the recent lows.
When we mark such highs and lows, we find a range, and when the price move between that range, it can be termed as range bound. (2/14)
✨What is Range breakout?

When the price breaks the range which we marked earlier, it means now the price is no more trading conjestion area, then it can be termed as range breakout.
After such range breakout, we can see good price movement in that particular direction. (3/14)
Read 16 tweets
Jan 16
What Is Stock Split?

A stock split is when a company issues more shares to its current shareholders by lowering the face value of each share at a specified ratio.

A Thread 🧵

#StockMarketindia #trading #StockMarket
It means that the number of outstanding shares is increased by dividing the existing shares originally issued to the present shareholders.
Though there is an increase in the number of shares, the overall market capitalization of the company and the value of each shareholder’s stake remain the same.
Read 10 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!