Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

JSE is lagging big time

Reply
THRESHOLD
Super Contributor
The question was: ... why is the market moving South:: Sellers exceed buyers! Your last traded price was just that. It is of no relevance in establishing a trend without the context of the traded prices that precede and follow it.
0 Kudos
Rams
Super Contributor
My point exactly..... Last traded Price is the only truth but maybe not much use..... Even previous price action( trend etc) is not absolute, becos it can mean anything .... So it comes down to having a system and not looking too much into the whys and why not becos nobody knows for sure....
0 Kudos
THRESHOLD
Super Contributor
As my Latin master liked to say: "You are perambulating on the outskirts of varacity." You are happily spreading the gospel of the merry trader BUT you are not providing an answer to the question posed by the author of this thread.
0 Kudos
Rams
Super Contributor
The answer is my post...NOBODY KNOWS!, so don't fret about it... You can choose to be confused by your bias, or you can choose to be smart by not being biased....but MARIKANA does come to mind...and Mangaung....but nobody knows for sure ....
0 Kudos
THRESHOLD
Super Contributor
Well my point is - fortunately - "nobody" asked either. The question that was posed is to be found at the start of this thread.
0 Kudos
Rams
Super Contributor
Maybe help us all, and repost the question here
0 Kudos
THRESHOLD
Super Contributor
Maybe you could - just to prove that you know what it is! It would be much easier than these endless unrelated posts of yours.
0 Kudos
Rams
Super Contributor
No, please, you pose the question...I don't see a question...the postee is confused about something Simon will say, he agrees but it confuses him because it does not make sense , he expects his bias to played out by the market, and the market does the opposite....so please tell us what the question is....
0 Kudos
THRESHOLD
Super Contributor
He asks "can anyone out there explain?" BIG ? (QUESTION MARK) at the end - that means a QUESTION. He didn't ask for a puerile take on trading. He asked about sellers exceeding buyers. The response that followed held that sellers = buyers = trade. I took issue and stated that this was not the case. You then chipped in your bit about how it was so at any given price. I can only assume that you realised this was nonsense and tried to cover the error by jabbering on about trading being about the price at the moment. So I will hand you the floor and you can carry on about trading the price.
0 Kudos
THRESHOLD
Super Contributor
AND I quote "Can anyone out there explain???" Big QUESTION mark. TMeans QuEsTiOn! The question goes to sellers exceeding buyers. Your favoured answer about B.S.T was just well... You wish to turn this into a podium for your "trade the price mantra" - go for it. BUT at least admit (to) the facts.
0 Kudos
Preston
Super Contributor
Threshold, Buyers will always equal sellers. If a seller price is too high, then his order will not get filled. What drives market up or down, is the force behind the Buyers and Sellers transcation namely "PRICE".
0 Kudos
THRESHOLD
Super Contributor
No! Buyers do not equal sellers. Price is a symptom of the imbalance not the cause. That is why a drop in price "clears the market." Price is a measure of the imbalance. An earlier post held that buyers = sellers = trade. That is an end of day summary of market action. It is simply stating the obvious: - I bought 1, you sold 1, trade was 1. It has nothing to do with market dynamics.
0 Kudos
Rams
Super Contributor
So, how does that EXPLAIN? Why the postee is confused
0 Kudos
THRESHOLD
Super Contributor
It explains the time element - time to clear the market and settle a balance between buyers and seller in terms of the current dynamic. An inflection point - as they say. It also explains why the market does not move purely on the latest buy-sell setup price but trends. How does your "trade the market price" explain anything? The seller does not say what he holds, what his approach to the market is etc. One might, I suppose, assume that he another ICU-bound trader given that they predominate this forum. That much I'll give you. Anyway - when one is confused - go back to basics. This is all getting very boring. We need to find something new to squabble about.
0 Kudos
Rams
Super Contributor
0 Kudos
THRESHOLD
Super Contributor
OK! BOTTOMS UP. Here's to time!
0 Kudos
partridge
Super Contributor
Is there a relationship between the length of the replies and the activity in the market? Inverse?
0 Kudos
Not applicable
Maybe the confusion is clouded by liquidity with stocks like any of the top 20 traded shares. Pick any illiquid stock like a small cap where everything is a slow motion and I guess that will clearly give a practical example of buyer = seller = trade; the number of tradeed shares for the day @ what volumes(quantity). The placed orders at what volumes. Now with liquid stocks, some people (fund managers with large chunks)buy mandatorily due to regulatory obligations such as pensions at market prices and end up driving the prices up. Then there are traders who would normally seasonally drive down the prices. The order drivers are the derivatives issuers who have to cover their positions with the underlying share. Be it long or short positions.
0 Kudos
THRESHOLD
Super Contributor
Really. hmmm... then why did FGL move 3000% in 10 months? Must have been a lot more buyers out there than we knew. Or - did the dynamics change - but wait they changed 6 months ago. hmmm... Silly buyers have arrived and distorted the price by paying up and raising the demand at each price point. Wait for bad knews and this will all move the other way - suddenly there will be more sellers at each point than buyers.. At each price point along the road B=S=T. It really tells you nothing about the market for the share now does it? If it was a constant and firm B=S=T - the price would never move.
0 Kudos
Not applicable
Just like apple shares a few months ago
0 Kudos