Last Trades of the Week to Plunge Price?

Hi,

I am new to trading and am quite interested in the psychological/game aspect of it.

I noticed yesterday (Friday) at the end of trading that a few shares dropped dramatically towards the end of trading. I don't think the results on NZX.com are real-time, but around closing time the lowest offer seemed to be quite a bit lower than the highest bid (could have been a glitch or me reading it incorrectly). For example, you can see Telecom rise to 2.47 and finally close at 2.36, and it drops off very quickly between 430-5pm. Looking at some earlier Telecom results it seems to drop off on Friday a few times before picking up on Monday.

Is this a case of people selling a smaller amount off at a lower price on Fridays so that they can buy a larger amount on Monday on the cheap? Seems a bit dodge, but possible since the trade volumes are quite low in NZ.

Or is it rather people setting a Friday deadline to sell and will take whatever they can get?

Or perhaps it is just how it sometimes goes?

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Originally Posted by shonen knife

Hi,

I am new to trading and am quite interested in the psychological/game aspect of it.

I noticed yesterday (Friday) at the end of trading that a few shares dropped dramatically towards the end of trading. I don't think the results on NZX.com are real-time, but around closing time the lowest offer seemed to be quite a bit lower than the highest bid (could have been a glitch or me reading it incorrectly). For example, you can see Telecom rise to 2.47 and finally close at 2.36, and it drops off very quickly between 430-5pm. Looking at some earlier Telecom results it seems to drop off on Friday a few times before picking up on Monday.

Is this a case of people selling a smaller amount off at a lower price on Fridays so that they can buy a larger amount on Monday on the cheap? Seems a bit dodge, but possible since the trade volumes are quite low in NZ.

Or is it rather people setting a Friday deadline to sell and will take whatever they can get?

Or perhaps it is just how it sometimes goes?

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Interesting observations, but really, if you try and psycho-analyse every small movement in share price or change in market depth or volume it will do your head in.

I learnt a long time ago that the market has a mind of its own and it is impossible to understand it sometimes.

Instead, focus your energies on things that you can control, like trying to identify some of the amazing opportunities that the market can offer.

More importantly, Shonen Knife, what a great band! Saw them play at a BDO in Auckland in the early 90s and they were sensational.

Quote:

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Originally Posted by steve fleming

Instead, focus your energies on things that you can control, like trying to identify some of the amazing opportunities that the market can offer.

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Yeah not spending much time on it, just find such possibilities interesting.

Quote:

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Originally Posted by steve fleming

More importantly, Shonen Knife, what a great band!.

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Indeed :t_up:

I trade regularly and have done so for a time but I am confused, particularly by trading outside market hours. 9am to 10am when the market opens and 5pm to 5.30 pm when the market closes sees quite a lot of trading to which I do not have access. In other words, if I have a buy or sell order in place, it may well be within the price range but it is not actioned. Who and how are the lucky ones who have access to this private market?

Thanks KW but It was about what I thought it was. The Australian market is clearly more complex than ours.