Crooks or traders? It's a super important question. If crooks are at work, it's usually wrong to go against them. However, if it's just traders, more often than not, taking the other side of the trade is the right thing to do. You never know what the crooks will do next, but traders are easier to figure out.
Last week or two, I've been greatly bothered by the stupid BKR. Despite a market selling off every hour and every day, this stupid toad stook firm as a rock. Every day, it'd spike down and I'd be in the green by $0.50 or $1. Then a big spike would wipe out my gains and the toad would climb steadily up $1 or $2. Disgusting. All when the market was crashing.
I kind of thought that the toad was manipulated by crooks. As a result, I just stood there instead of profiting from the $2 - $3 daily moves. Today, the toad simply crashed. I covered my last 100 shares at $39.40 after it again showed "strength" in yet another sell-off in the market. And I left $3 on the table. I thought about it some more and I felt that the toad's silly moves are simply traders trading. And I should've made a lot more money on this stupid toad had my perception been correct.
The stubbornness of the toad during the first couple of days of the market reversal could be simply traders trading. The toad had such a low volume that you may not get 100 shares easily even if you buy at the ask price. The people placing the bids were probably just shorts trying to cover. Despite the sell-off in the market, they probably had trouble covering even a few hundred shares.
The toad's seeming "strength" probably got some traders' attention. And they might jump in with a few hundred shares. Since the toad had such a low volume, this could easily push it up a few dimes. Then the frustrated shorts would get alarmed and they might even cover with market orders. Because of the low volume, the toad would stay elevated. This would attract more traders and frustrate more shorts. And it could spike up one more time later in the day.
However, neither shorts or longs would want to chase the stupid toad at extended price, especially when the market was selling off. And the toad would fall on its own weight.
A few back and forth like this, all the nervous shorts got flushed. The toad would lose its silliness. And now instead of shorts wanting to get out, longs would start to feel nervous. Instead of moving up easily with the market, the toad would stay dead. Longs would get more nervous. Then when the market drops, the toad would start to free fall.
Did anything change about the stupid BKR from a couple of days ago to warrant the almost 10% sell-off today? Probably not. It could all be just traders trading.
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