Hi Can someone explain to me why there are constant trades of small amounts of lowly priced shares for a few hundred Rands? Is it worth it? Surely broker fees make such deals uneconomic? Or am I missing something? Are they trying to trigger stop losses and thus manipulate the price? Or getting a better brokerage rate than me? I would appreciate any ideas please?
Sometimes if you put through a trade at a specific price, there may only be a certain number for sale at your specified price. Later on there may be more available at that price. Normally SFM call me in these situations if the full amount I am trying to get, isnt available. That may account for some of the small trades. Some may just be mistakes - it happens - you forget to add a zero or couple of them to the trade. I know someone who has done this.
Sorry I believe it is brokerage firm traders who are not paying any brokerage fees, and people with huge money in a share, who play these small trades to trigger stop losses and trigger buy signals above a trend line or signal line to get buy in, and to start a share moving up/down.
I think there may be some truth in Crown A's comment. Example look at Dialogue DLG. Someone just sold and bought around 1400 shares at 15 cents. Later the price may be up to 17 cents again for a few shares. This has been happening for a few days and I can see the same occurring with several other penny stocks. Why?????