Australian (ASX) Stock Market Forum

What drives share price?

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Nov 22, 2010
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It's time to have a thread on AUCTION ACTION.

Why?

Because it is so misunderstood.

What drives share price?
Some say value, some say sentiment.
Some say announcements, discoveries.

Some honestly don't know.
 
Joined
Nov 22, 2010
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Re: AUCTION ACTION

Best post on auction action that I have seen on this forum:

yes, it's a fair question....

ok, for example and in no particular phase or order, think on this.....what is sentiment?

think about yourself.....your question carries a sentiment.....it's bullish.....you think that by looking and knowing what drives up price can give you an insight into getting in at the right time and at the right price

there's a lot of people thinking just like you......accept that youre just like everyone else

accept that you dont know that there are some people who have a lot of money who are the true drivers of sustainable price and who can also withdraw their long-side support at any time

accept that your prospective share is really a vehicle used to make money, to churn volume and price.....to withdraw value from your account to someone elses......this is the art of pushing the bid against the offer to force direction and tap sentiment.....

accept that right now you cannot read the signs of genuine accummulation versus a rinse-n-spin price rise

if you do accept this basic concept that you (yourself) cannot read when a price is being mined for its sentiment value, then, you are one step ahead of your account going to zero.......the odds of your account hitting zero is far higher in probability than you picking the winning horse.....because you are basically ignorant of the people who you are buying from... acknowledging this is a good thing....recognize this and take steps based on this ignorance, once youve owned up to the very thing you dont know youre way ahead of everyone else who's guessing as they go.......

your prospective speccy stock is already known and understood by the money that needs to know.....it is extremely rare for the major money not to know what-when-where of a company......the likely hood that you'll buy an oil-gusher or new technology ahead of anyone else is a fat-chance-to-none on an odds basis

so, this brings you back to the basics of what makes an auction, who comes to it and for what purpose......


several people here can write a cupla chapters on what makes volume move thru an exchange for one single stock code......but before you get to a specific code you need to be satisfied you understand what makes an auction

:)
 
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