Is there a guy sitting on a computer pushing up/down share prices based on market sentiment? Or is it done through complicated computer algorithms? Sorry if this is a stupid question.
Yip its like a stalemate between buyers and sellers until someone (anyone) breaks it by buying off the lowest seller, or selling to the highest buyer... Rinse and repeat by lining up the new highest buyer and lowest seller and seeing what happens.
i wonder how many buyers and sellers use sharetrading software?
as buy signals apear the people buy........ as sell signals apear.... they sell.
seems to me, that most traders follow the direction of their software signals.
so you could say, that a very small handfull of people can place a buy or sell and trigger a buy or sell on thousands of peoples share trading software.
for instance......... NZO is linked to the price of oil, whether it produces oil or not!!!
look at a 3 year chart..........
this just shows that most traders are just punters following a piece of software relying on historical data. this is how trading waves are formed, bubbles and crashes.
those that get rich are the ones that dont follow the herd... or trigger the herd into a direction.
It used to be the taxi driver comments that spelled the end of a bubble, now its a ping on your trading software......... trouble is......... all the pings go off at the same time, as with the taxi driver it takes a few weeks for the dump orders to go out.
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