I do not worry too much about the stock markets manipulations. However, when a stock market manipulation involves the distortion of the price-action, everyone is concerned. I have high regards for those who denounce stock markets manipulations' price distortions . This article will help one to comprehend the biggest stock market manipulation. Let's get started.
An example of stock market manipulation would be to place a large order to sell a stock at specific price level with no real intention to fill the order, but to scare bullish market players.
As those bullish investors saw that huge bearish order, they will surely run off and cause the price to fall before the person who is manipulating the markets buys the stock at a lower price with a big smile in the face.
He has effectively manipulated the stock markets. The stock markets decline so he can buy stocks at reduced price. It becomes very interesting because as he cancels his dodgy large and scary sell order, bullish traders who initially were scared away now see that the large sell order has disappeared.
You guess it right. They will also come back and buy together with the market manipulator. Those manipulated bullish traders and investors are working for the stock market manipulator.
Please understand that some of those bullish market players were forced to close their initial bullish positions because of that scary fake large sell order. Some did take losses in the process. All in all, the manipulator has successfully used everyone 360 degree.
One will agree that the biggest stock markets manipulation is the enemy of all market players. Of course, I can give many other examples, but I will hold my fire for now.