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Online Share Trading

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Share manipulation

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Eppies
Frequent Contributor
It is clear that there are people trying to push the price of this shate down to trigger automatic stoplosses. Why will a person sell 1600 share if the transaction cost is more than the total cost of the share unless they use the benefit that Standard bank provide where you can trade a share more than once a day and only pay transactin fees for one trade.
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21 REPLIES 21
wattleido
Occasional Contributor
Not everyone pays brokerage how you are thinking about it. Day traders and institutional guys who have direct market access pay a hit cost per matched trade rather than a brokerage percentage making their costs significantly lower Im not saying there isnt manipulation but a single matched trade of 1600 shares will cost DMA traders very little (R20 when per matched trade when I was doing it)
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wattleido
Occasional Contributor
In fact the lower costs gives more room for potential manipulation. Also know that the majority of trades nowadays are done by machines and not by humans. The machines do what they are told to do whether it makes logical sense or not.
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SimonPB
Valued Contributor
hmmm, maybe .. or maybe not .. aside from the fact that OST has DMA, what of STT, Strate, & IPL ?? just because the trade makes no sense doesn't make it manipulation ..
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Brainware
Frequent Contributor
I agree Yet, how does it make sense then?
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SimonPB
Valued Contributor
another Q .. why is a 4c up move (on Friday) not count but a 3c move on Monday is all about manipulation ?? and the R164 trade at 42c raises no eyebrows ?? it's a market, stuff happens we understand very very little of it ..
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Preston
Super Contributor
yip, never did understand why Woolies was a R50 shares?
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SimonPB
Valued Contributor
yes preston we we understand that you didn't understand .. but just because you didn't understand (not with standing your getting the numbers wrong) did not make the logic wrong ..
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Preston
Super Contributor
@simon, Stuff happens we understand very very little of it ..
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Cherry
Regular Contributor
It possible that its a part order for which you wouldnt pay any costs if it goes thru on the same day.
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Cherry
Regular Contributor
It possible that its a part order for which you wouldnt pay any costs if it goes thru on the same day.
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THRESHOLD
Super Contributor
I don't how you can manipulate a widely(ish) held company with over a billion shares in issue by tossing 1600 of those 40c shares into the market.
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Eppies
Frequent Contributor
It has happen to me once where I have set an automatic stoploss and got stop out just because 2 shares were traded at a stoploss level. The shares immediately shot back afterwards to a much higher level. So my experience is that there are definately people that do put by orders in and then sell a small number of shares, when there are an window of opportunity, and then benefit from the transaction. I fell one must be able to set a stoploss at a certain volume of shares.
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Eppies
Frequent Contributor
It has happen to me once where I have set an automatic stoploss and got stop out just because 2 shares were traded at a stoploss level. The shares immediately shot back afterwards to a much higher level. So my experience is that there are definately people that do put by orders in and then sell a small number of shares, when there are an window of opportunity, and then benefit from the transaction. I fell one must be able to set a stoploss at a certain volume of shares.
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THRESHOLD
Super Contributor
Not really share manipulation though - just trying to force you to sell to them to absorb the transaction costs.
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klapka
Super Contributor
Not the sort of share to use a stop loss. Even if volumes are reasonable, a few cents move can be 10% or more.
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koos2
Super Contributor
I really need to tip my hat to the engineers at standardbank, they really work hard. Whenever i wanna do a trade, they bussy themselves with maintanance of the system. I think they are trying to keep the hackers out.
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Galuc
Super Contributor
After 2008 klap and because I am not always close to a trading platform, I keep a stop loss on my shares. Maybe it is old school according to the 'new' seminars anyway, but it lets me drink my whiskey with some sense of false security. This morning Pinnacle was stopped out and I am also convinced it was manipulation, but that is how the cookie crumbles!
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WES
Super Contributor
Stop losses are golden. Regarding manupilation, remember it is a FREE market system not a restricted market system.
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Eppies
Frequent Contributor
You are not the only one in the boat. I once baught Netcare CFD'd at R9.50 and went long with a stop loss at R9.35. I was stopped out just because 2 shares were traded below R9.35. After that drp the rest of the shares traded well above the R9.50 that I originally paid. That was a couple of years ago and since than rather watch my shares more often.
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