InvestorsHub Logo
Followers 10
Posts 804
Boards Moderated 0
Alias Born 01/06/2017

Re: None

Wednesday, 11/22/2017 9:13:44 AM

Wednesday, November 22, 2017 9:13:44 AM

Post# of 203907
If you have a million dollars to bet on a trade, and you don’t want to cause a run on the stock, you might go dark. Also, if you’d like to screw with the little guys and squeeze the best possible return on your buy or sell order, you might go dark.

Full read here: https://equity.guru/2017/11/16/unreliable-actors-nexus-gold-nxs-v-got-shanked-dark-money/

Also, if you want to absolutely gut punch a stock, and don’t want it being traced back to you, you might go dark.

You may be surprised how often you’re buying from, or selling to, or had your expected sweet price snapped up a millisecond earlier than your trade by dark pools.

This is not a small thing, in fact 40% of all trading in 2014 came through off-exchange trading, and it’s not put in place to protect the little guy. At all.

But if the seller wants to crater the stock, then they’ll just keep dropping it, a few hundred K at a time, getting it low enough that the sells begin to trigger stop losses, meaning investors who have told their trading desks to sell a stock if it hits a certain point, will hit that point and have their asset sold automatically. This further lowers the share price, and creates an investor vacuum where folks decide to get out until the dust has settled.

Panic ensues. Long holders start asking questions of themselves, like, “How much money am I prepared to lose on my faith that this company is good?” and “Do I have enough money left to pay my rent if I sell right now?”

Little Timmy needs braces and so dad dumps to the market.

Sounds similar? I hope all longs are still intact here and ready for an EPIC RUN 2018!!

https://equity.guru/2017/11/16/unreliable-actors-nexus-gold-nxs-v-got-shanked-dark-money/