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Re: jaetrader post# 34658

Tuesday, 07/19/2011 11:53:13 AM

Tuesday, July 19, 2011 11:53:13 AM

Post# of 79471
when a stock goes from lets say .10 to .30 you're going to have a portion of investors that sell at .30 and take their profit .... when the stock comes back down to lets say .15 then often times those who sold at .30 will re-enter and purchase twice as much as they had. Essentially, when those shareholders re-enter they help to establish a stronger base and put the shares in hands of those that are not going to sell until the pps starts rising again; which can be referred to as "consolidating" b/c you're putting a greater percentage of shares in the hands of those making an investment rather than day-trading. Consolidating really just drys up the shares that are looking to be sold immediately which allows for the pps to rise on thinner volume... little complex but hopefully I simplified for you.