Stock Charting for Beginners - A Salutary Lesson to be Heeded if you Value your Money!Watch this very interesting video below on stock charting by self-declared 'stock trading master' Lance Jepsen. It is interesting for a couple of reasons, firstly, stock trading master said (before the week started) that this week the stock markets would be in a weak downward trend, well he was right, apart from the fact that the downward trend is probably stronger than expected.
The second point he makes is, however, more intriguing. He says something that lots of people have long believed, namely that professional traders with very deep pockets can and do manipulate share prices to their own advantage. Some of stock trading masters own stock recommendations, he says, have been hit by professional traders deliberately targeting them so as to create forced sellers or hit people's stop losses and then they buy back the shares and make a whole load of money from the poor suckers who had to sell.
Stock trading master's share tips are provided free of charge BTW.
However, a more illuminating example that he quotes is that of Mark Skousen. Mark Skousen is a well-known economist/tipster/trader who sells subscriptions to his newsletter for $1000 a year apparently. Well, just recently he recommended a stock for purchase (AGNC American Capital Agency Corp.) that was trading at $28, and set his stop loss, for all his subscribers to see, at $24. Strangely the stock had its very own "flash crash" as Mark Skousen himself describes it on his website.
The price plummeted from $28 down through the stop loss target of $24 (thus triggering more sells) and finally reached a low of the day at $22. After reaching this low it promptly turned around and shot back up to finish the day at $27. A lot of people in the know no doubt made a lot of money, while another load of people following Mark Skousen's advice lost a load of money. Stock trading master says he never posts his targets and stop losses when he posts his tips because he knows the games the instituional traders play.
Market manipulation that should be investigated by the SEC says Lance Jepsen. I won't hold my breath on that one says Ed the Talking Horse, but proof, if ever it was needed, that the stock market is a dangerous place to risk your hard earned cash when you don't have access to all the information.
Lance Jepsen's site is here http://www.guerillastocktrading.com/
For more info. on stock charting see - the basics about stock charts