Lesson for all: Big Fish vs Small Fish Trading Pattern...

Usually, I provide lesson to my subscribers only. But this forum link below to explain what is big fish vs small fish trading pattern prompts me to do so. http://www.sharejunction.com/sharejunction/listMessage.htm?topicId=5421&msgbdName=$%20EzionHldg

First thing first, How is Ezion's perform today? During my buying call at 0.745, the volume surge not that positive yet but only with accumulation mode. It moved tandemly when the stock price was at 0.75 and 0.755. Notice that there are also big bulk at 0.76 and 0.765 but that doesn't mean tomorrow might be flying unless buy-in seeping in in the first session of the trading. There were also big bulk selling at 0.76 and 0.765 that what brings me to the next lesson, Big Fish vs Small Fish Trading Pattern.

First of all, 0.765 is so called a "pin-point junction" where sell-off has happened in bulk too. There was also parts of the big bulk locked-in at 0.75 and 0.755.
So, now can we see a relationship here? Big Fish has bulk volume at 0.75, 0.755 and 0.765. They disposed off 0.765 for some mini-Ewave profit in order to reap some profit first. But what about the small fish? (Small Fish = Retail Investors). Are we able to do that?

So, next question is... usually small fish will look for a higher spread than this to earn a better profit before selling off the holding. I bet some of you who got it at 0.745 and when looking at the price at 0.765 will just keep in view that it will move higher to earn higher spread margin.

But..but..one thing I want to say here is, if the signal is not yet established as a run-up wave (eg: 31/03/2010 -> 09/04/2010) where retail investors can purchase at 0.76 and sell it at 0.81 , it is always good to practice disposing at least half of your holding as the "real confirmation" signal for the run-up wave is not yet confirmed.

So as for Ezion for now, if you can hold on to this stock for accumulation process during the next few days when the signal is clearer, you will be able to at least hold on and earn a higher spread.

Ok, let me quote one real life example on Ausgroup( if you search my blog on Ausgroup or Sharejunction on this topic) , I did make a buy a call during accumulation period at 0.595 and if you hold on to it for the next 7 days, it went up to the high of 0.69 the following days.

So, this is what I call the different between Big Fish and Small Fish Trading Pattern. Though, today's volume one big fish still loaded at 0.765 in bulk. We will see how they will turn out to be.

P/S: Above is quite "dry". But one thing I have forgotten to mention, Big Fish also always take the opportunity on the global news to accumulate more in dip even though the TA Charts says uptrend as to take advantage of the emotional fears of the retail investors.

Hope it clarifies.

Thanks,
Star-Trader