Im not a pro on reading the tape but a certain stock?

Question

Im watching is pissing me off. A whole sea of buys(green) yet this stock doesn't budge but one little sale of 100 and this goes down a penny it's been doing that the whole day. They say when more buyers than seller stock goes up. Well evidently thats not true is it. wtf. Can someone explain the phenomenom behind this.

Answer 1

Purchases (or indeed, sales) of less than 100 shares tend to have little or no impact on a stocks price, because they are being facilitated by "Market Makers", whose job is to help improve market liquidity by trading in less than "job-lot" quantitities.

The fact that this is happening to a stock you are interested in indicates it is probably a "penny stock" (ie it trades for less than $5/share), and that the "buys" are being driven by either hype, or by dozens of other traders just like you, rather than any underlying fundamental value in the shares.

For a stock to move down a penny on a single sale of 100 shares means it's probably worthless...sorry!

Answer 2

I have no idea what stock you are talking about.

There are a ton of factors that moves stocks and markets.

The theory that there are more buyers than sellers does not move a stock. In practice for every buyer there is a seller.

If you are trading penny stocks, you can't expect much.

Answer 3

You are not giving us all the info so that we can provide with a good answer. (Like what stock it is, is it liquid or not etc.)

If you see people taking the offer (buying market) and the price doesnt rise that means that there is someone there refreshing the offer. As soon as someone buys from him he puts out more. What you are most likely seeing is a lot of small buyers picking at a large guy's sell limit order. The NUMBER of buys and upticks doesnt matter. The SIZE matters, obviously (and I am assuming this is a normal situation) the whale is selling and the guppies are buying. Think about getting out and placing a buy stop to get back in over this resistance level because you are most likely on the wrong side of the trade from a tape reading perspective.

Answer 4

Every transaction involves a buyer and a seller, so forget all the noise about more buyers than sellers.  There is always an equal number of buyers and sellers.  ALWAYS.

A stock goes up when the people who want to own it get excited about it and raise their bid prices high enough to get an existing owner to sell..  A stock goes down when the people who own it lose hope and lower their asking price to get rid of the stuff.

Here's tape reading lesson 1.  If it's a strong day for a lot of stocks and a certain stock isn't going up, it's because people with money know it's a dog and want to put their money into something else.  So, it's a dog; get rid of it.

The stock doesn't know you own it.  Don't make the beginner mistake of holding on all the way down because "it just has to go up".