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Saturday, 24 October 2015

Frog effect in stock market

The boiling frog is an anecdote describing a frog slowly being boiled alive. The premise is that if a frog is placed in boiling water, it will jump out, but if it is placed in cold water that is slowly heated, it will not perceive the danger and will be cooked to death. The story is often used as a metaphor for the inability or unwillingness of people to react to threats that occur gradually, such as climate change. This is explanation from Wikipedia.

In the stock market if the syndicate is using this way to manipulate the price. There is only one destination for small fish is called "Game Over" when the music chair stop. For instance, syndicate push up the price slowly and smoothly with good news, small fish will be happy to hold it as the price is going uptrend. Syndicate will perform the same way to attract more small fishs on board at different of wave. Once the timing is matured, syndicate will release bad news, stock price can hit limit down and small fishs will stuck and hardly to escape or wishing the price will rebound.

Price within fews days hitting limit down till the syndicate successful unloading. The game is over for small fish and they will only reliase their dream is burst and they are too late to escape.

Aim the bull or else be the boiling frog.

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