How Private Investors Are Screwed
May 11th, 2010
Here is a great example of how private investors are screwed by the corporate traders. But if you recognize what they are up to, you can avoid being screwed maybe.
The image below is from my trading screen and spans 3 days. In it I have placed some big arrows indicating large gaps in the stock price of XTA (a UK stock which I trade).
These gaps are obviously something that is out of our control as a private investor, so we have to consider how we can use these to our advantage.
During the day, we can trade the swings, but it is obvious that we need to sell when we are in profit before the day ends, or we re-invest at the lows towards the close of trading when we expect a price recovery. But that’s just my personal opinion.
Categories: Trading
