This is what I like to call smart buying with an intent to sell, bought some stocks at the lowest price of the day and by market close, the stocks are up already 7% on the first day alone. Taking the type of huge outstanding bids for this stock, it will not be surprising to see it gain 20% in the first week alone.
The stock am talking about is Linkage assurance. It was bought at 1.15 and it closed for the day at 1.26. Lets see what next week has to offer us.
Friday, 7 November 2008
STOCK BROKER TRICKS
This is the stage where stock brokers make their billions; this is a time when, if you are not very careful, you will play right into the hands of greedy brokers. More so as they have been starved of action for many months now. Surely, ugly stories will still be heard about another type of internal manipulation.
There are investors that filled purchase orders at market price and without time limit and left such with their brokers, as prices rise, these brokers will now fill such orders and buy for you at the zenith of the rise, guess where they will get the shares to sell to you? From their reserves of course, selling to you from the ones they accumulate now and tell you its scarce in the market.
Another type of this same practice is where you fill sell orders and leave with your brokers when prices were still high, like three months ago. There might be no buyers then and you will forget about the order, thinking it has expired. Some unscrupulous brokers, sorry breakers will now get up and sell your three months old orders at 50% less the price you had in mind when trying to sell (remember we were all begging to get the stocks sold, so no limit prices then)
They will be the ones buying the stocks!
There are investors that filled purchase orders at market price and without time limit and left such with their brokers, as prices rise, these brokers will now fill such orders and buy for you at the zenith of the rise, guess where they will get the shares to sell to you? From their reserves of course, selling to you from the ones they accumulate now and tell you its scarce in the market.
Another type of this same practice is where you fill sell orders and leave with your brokers when prices were still high, like three months ago. There might be no buyers then and you will forget about the order, thinking it has expired. Some unscrupulous brokers, sorry breakers will now get up and sell your three months old orders at 50% less the price you had in mind when trying to sell (remember we were all begging to get the stocks sold, so no limit prices then)
They will be the ones buying the stocks!
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