I've been watching the time and sales on various stocks and have noticed that along with large volume trades worth many hundreds of thousands, there is quite often a lot of little trades, worth only tens of dollars or low hundreds, and I ask myself "who would possibly bother entering a trade of that size? surely the commission would be a huge percentage of the cost of the trade, making it extremely difficult to profit from"..
But then it occured to me that it might be the market makers at work, or someone with a vested interest in using tiny trades to coax the price in a particular direction, essentially increasing or decreasing the current price of the stock to encourage momentum. I assume those watching the volume as well as the price wouldn't be fooled, but is this what goes on? If not, what exactly is going on?