(Total Views: 255)
Posted On: 03/20/2018 7:29:18 PM
Post# of 72440
Re the term "wash trades" -using the "cockroach theory" -- if you see one there are another thousand hiding --
because I received a PM from someone inquiring about this, it may be that others are confused as well.
When Alan and 4kids refer to "wash trades" they are NOT talking about the "wash trades" that involve TAXES. The tax-based term "wash trades" refers to buying or selling a stock that you've taken a loss on within the past 30 days.
THAT'S NOT WHAT THEY MEAN.
When Alan and 4kids talk about wash trades, they mean multiple lots of "shares" that are bought or sold in about the same amounts, at about the same price, by one entity or by colluding entities ("CE's in their terminology) simply for the sake of making it look like there is a lot of volume.
You've seen those days with much less than 100k shares volume. There were not so many of those obvious trades. But when you see, for instance, 918 shares traded, and then shortly thereafter another 918 shares "traded" at the same price, well...
a person's gotta wonder.
So please -- don't confuse wash trades with "wash trades." If ya know what I mean.
because I received a PM from someone inquiring about this, it may be that others are confused as well.
When Alan and 4kids refer to "wash trades" they are NOT talking about the "wash trades" that involve TAXES. The tax-based term "wash trades" refers to buying or selling a stock that you've taken a loss on within the past 30 days.
THAT'S NOT WHAT THEY MEAN.
When Alan and 4kids talk about wash trades, they mean multiple lots of "shares" that are bought or sold in about the same amounts, at about the same price, by one entity or by colluding entities ("CE's in their terminology) simply for the sake of making it look like there is a lot of volume.
You've seen those days with much less than 100k shares volume. There were not so many of those obvious trades. But when you see, for instance, 918 shares traded, and then shortly thereafter another 918 shares "traded" at the same price, well...
a person's gotta wonder.
So please -- don't confuse wash trades with "wash trades." If ya know what I mean.
(2)
(0)Scroll down for more posts ▼
