The term "stock dealer" always appears and is heard when you are playing stock. Every time the stock price rises drastically suddenly in a short time or vice versa, everyone immediately mentions the city as the cause of the increase / fall in stock prices.
The question is: Who is the stock dealer? Why do stock seminars often teach topics about bandarmology, as well as how to detect the movement of the city?
Who is called a stock dealer?
Actually the term city itself is a market maker. So, if you hear the term market maker, that is what is called a dealer. In short, a stock dealer is a group of people or institutions who have jumbo capital and greater patience in trading certain stocks.
What is clear is that stock trading is not carried out individually, but in groups to move certain stocks. Because they have large capital, they can easily move the price of certain stocks in the direction they want. That's why they are called market makers, which in Indonesian is "market movers".
While the institutions in this case are usually foreign securities companies and local securities. If you read about it in online media, usually the biggest buyers and sellers are always mentioned for A shares, B shares which incidentally come from local and foreign securities.
How does the dealer fry the stock?
Stock dealers never escape the term stock frying, because that's the job of stock dealers. Dealers fry stocks by: Looking for stock movements that are less liquid or even sleeping stocks, and whose prices tend to be cheap (under 2,000). The stock price of IDR 50 is very easy to become the target of the dealer.
Read also: Studying Bandarmology: ENRG Stock Accumulation. In addition, the stocks that are fried by dealers are generally companies that are in trouble, whose fundamentals are not good, and companies that are circulating rumors about this and that, which have not been proven to be true.
Then, usually the dealer will try to attract the attention of the stock by making a large purchase offer, but deliberately does not increase the price first, so that the volume increases significantly. Over the next few days, bookmakers will start raising the stock price by a point or two, and create thick bid-offer queues. Also read: Volume Analysis: Reading Sleeping Stocks To Fry
The goal is that small traders and scalper traders are provoked to enter and start buying their shares too. The dealer also wants to make sure in advance whether there is great interest from other traders or other bookies to participate in the stock that is being fried.
If there is no great interest, the bookie will think again or postpone frying the stock. Well after that, the bookie continues to try to slowly increase the price. Let's say the dealer starts frying the stock at a price of Rp. 100. The stock dealer will initially raise the price to 101, 102, 103, 104 first.
After that, the dealer will sell again at 104. This is intended so that if there are other traders who sell big at 104, the dealer can accommodate again at 102. This action is carried out continuously. So, in this way, stocks that are fried in price always seem to be guarded by the dealer.
When the bookie raises the price slowly, the dealer actually already has a large share of shares at the bottom price, which is at a price of 100-101. Thus, the city will try to keep the price so that it does not fall again. Once the bookie is absolutely sure, the new bookie will start to drastically increase the stock price.
That's what causes illiquid stocks can rise up to 20% in a day even in a few days. When the bookie feels the stock price has gone up high, the bookie will flush with a sudden massive sell-off that causes the stock price to drop drastically, and can drop up to 20% in a day.
So, this city playing pattern can be done for several weeks or even months to lure traders, and increase stock prices.
Did you understand here?
From this it can be concluded that the bookie has extraordinary patience, has large funds and is intelligent. So, if you play fried stocks, you should never go against the flow of the city, and never dare to bet on holding fried stocks for too long.
