Investment in Stock Market: a Game for Institutions?

An article by Punit    1 Comment

Is it true that stock market is now a game for institutions only? By that I mean, large institutions who own big majority of shares in various companies. That can be anywhere from 8-10% equity ownership in the respective company. With that kind of ownership in the stocks, they get the power to manipulate the market at their fingertips. If they sell a few million shares, what can really stop the shares for that company from tanking?

The answer lies in the pattern for stocks. You will notice a distinct pattern in the PPS for each and every company. Thats where big institutions put their great minds hired from top schools. i.e. come up with new ways or new patterns to manipulate the market. In the stock market, sudden spikes in the PPS or tanking event out of nowhere is a thing of everyday. If you own the stocks of a company which you truly believe is going to thrive, and if the stock starts going down, do not panic. Research carefully, it might be just a game of these market manipulators.

Look at the PPS pattern for NASDAQ:TEAR & NASDAQ:ABIO in the past week, both these stocks experienced unexpected spikes. You cannot explain why! What is the result? Well, new investors get tempted by these sudden spikes and they will do panic buying and then the stock drops and their hard earned money goes into institutions pockets. Similarly they can also create  unwarranted sell pressure on a stock causing investors to quickly sell and bear losses!

What is the solution? Solution is to stay calm while the market swings. Keep an eye on the news for the stocks you own and strike when its the right moment!

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