Excellent elaborations. I can't tell you how much I'm learning here!
Some of all that might be confusing to new investors, which is all the more reason to keep this board marked and to refer back to. A re-reading of the ibox and a good many of these posts, after a month or two, will explain things that were not understood the first time around.
Thank you Stock Lobster!! I printed off your reports on PIPE and bid whackers, so I can study them and memorize!! Been investing for a number of years, but always on advice or suggestions by others, made some lost some!! I really do appreciate this board and all the info that people contribute it helps tremendously!! GLTA and may your choice's be the right ones and when some are not, never be bitter, it becomes like a cancer that eats you up on the inside!! Move on and rejoice in the fact that you will find a winner!!
Bidwacking. This is when a seller chooses to sell his/her position 'at market', instead of 'at ask'.
Depending on the size of the position, the shares will 'hit the bid' and usually have the effect of causing the bid to drop quickly. Buyers suddenly realize that sellers are anxious to sell, and as a result, they drop their "bid" price even further. Buying and selling is all a matter of creating a market perception. most people want a stock that is in high demand, where sellers are reluctant to sell except at a higher price. Similarly, Most buyers will get spooked when many sellers suddenly are willing to drop their price just to get out of the stock.
An excellent point. I think some investors have the erroneous idea that if they enter a limit order that they are divulging private information to some market maker who will ensure that the stock never reaches their level. So they resort to hitting bids or lifting offerings and end up costing themselves money.
So then ,can sellers create a sense of market weakness if they don't stand their ground and hold out for "ask" rather than give in to the market because they are anxious to sell to the first highest bidder. Then the bidder spots that mentality and keeps pulling out from under the seller(s)?