That post explains what is going on. It is NOT manipulation. This is called market making and is essential to a functioning market. People must post the orders they are willing to buy and sell at in the orderbook. You are seeing a market trying to determine a good price for IPO. It just takes time for orders to come in and the bid-ask spread to come together.
The problem here seems more like people have jumped into stock trading in the simExchange, but haven't taken the time to understand the fundamentals of how a market works.
I have observed people making profits off of manipulation of the IPOs.
"How do they make "profit margins" by staying up late last night? There were only like 500k DKP of the stock traded when I got up this morning."
500kDKP with a 100% rise = 1 million DKP. I am saying there are one or two people making 2-300k DKP gains on the stocks each day. All you need to do that is buy 2-300k worth of the stock (which could be a single order valued at 250k) at a low price and then sell it at a 100% higher price to make a killing.
This isn't people trying to find a good price for the IPO, its simple manipulation of the system to make a profit for 3 days until they put the marketmaker in.
@pilias_simber, there's no "shooting" up the stock price. The ticks you see on a ticker are just the prices other people were willing to trade at in the past. That doesn't mean the stock is worth that much! If you think a stock market is 20% too high, you can trade it 20% lower if you want. Ideally you would short at the highest price you can and bring it down. A stock market functions by supply and demand of its traders.
How do they make "profit margins" by staying up late last night? There were only like 500k DKP of the stock traded when I got up this morning.
@charron, if you guys are seeing prices you think are too high, why are you complaining? Why don't you just short the stock down? That is how a stock market works =).
@charron, I really think its just people who don't pay attention to price and are buying the stock because its Brain Age. Everytime I post a sell order, someone takes it so I raised it assuming it was too low. This was at 13 million. No idea who is buying this at 24 million...I would assume these people aren't even looking at the price they are buying at.
@pilias_simber, such action wouldn't surprise me. That said, it's not exclusively an issue with the lack of marketmaker. While that is part of it, I also think the fact that the whole site "resets" at Midnight Pacific is part of the equation. A few big trades at 12:01 am sets the tone for the rest of the day. If, instead, activity were formatted for the last 24 hours, then no trades could have higher significance over others solely because of timing. I don't have issue with bid trust and rankings being set at midnight, but everything else should be based on the last 24 hours rather than since midnight.
I do think that using the Pacific time zone for the site's midnight is rather unfair to those in the Eastern time zone (like myself), as that'd be far too late for many to stay up. If the site were based on Eastern time, then at least all of the American time zones could be active for midnight more easily.
@pilias_simber, I'm not saying you are arguing for the 25 million position. But obviously some are voting with their DKP that it should be that high, and I just think it's an utterly foolish position. The information you provided only further strengthens my belief; it's way too high and needs to drop to something more reasonable.
I, personally, wouldn't say I hate the new system, but it obviously needs a little more refinement.
I'm not arguing that it should be at 25 million, I haven't done research on this stock in general, I was hoping to simply outline some factors that I wasn't sure people were looking at in determining the stock price so they could get a more accurate position.
I don't take positions in IPOs until the market maker is put in because I hate the system.
@pilias_simber, that's true, but is it enough to warrant a 250% increase for the sequel? Or even a doubling, if we assume Brain Age 1 peters out to around 12 million. I'll concede that my 12 million estimate is low, but I still hold that 25 million is far too high.
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That post explains what is going on. It is NOT manipulation. This is called market making and is essential to a functioning market. People must post the orders they are willing to buy and sell at in the orderbook. You are seeing a market trying to determine a good price for IPO. It just takes time for orders to come in and the bid-ask spread to come together.
The problem here seems more like people have jumped into stock trading in the simExchange, but haven't taken the time to understand the fundamentals of how a market works.