what is odd lot theory?

[MCR logitech]

what do you know about odd lot theory??

I know little about it. correct me if I am wrong.

Odd Lot Theory is one of the most common theories or indicators , which is based on the supposition that the tiny individual investor is wrong always. When the odd lot sales are high then it says small investor is selling off the stock and hence it is good time to buy the stock.



share your views.

 

[Enivid]

It is called trading against the retail market sentiment and is one of Sentiment Analysis strategies. We have written about Sentiment Analysis in these blog posts:
http://www.earnforex.com/blog/how-good-is-sentiment-analysis-in-forex/
http://www.earnforex.com/blog/how-to-measure-retail-forex-market-sentiment/

 

[jellyeb]

what do you know about odd lot theory??

I know little about it. correct me if I am wrong.

Odd Lot Theory is one of the most common theories or indicators , which is based on the supposition that the tiny individual investor is wrong always. When the odd lot sales are high then it says small investor is selling off the stock and hence it is good time to buy the stock.



share your views.

Its not about wrong direction its about correct stake management. Play with your friend two opposite positions each time but with different SL and TP - yu will both lose despite of making opposite trades..
I think this strategy doesn't work

 

[daniele roos]

old lot theory is just a technical theory based on the assumption of low risk tolerance of small investors. according to this as small traders tend to have a low risk tolerance and do not hold a stock for a long term period, therefore, selling of odd lot of stocks indicates a good buying opportunity in the market. for the reference, an odd lot is that order amount for a security which is less than the normal unit of trading for that particular asset.

 

[Kizmi Khan]

It is called trading against the retail market sentiment and is one of Sentiment Analysis strategies. We have written about Sentiment Analysis in these blog posts:
http://www.earnforex.com/blog/how-good-is-sentiment-analysis-in-forex/
http://www.earnforex.com/blog/how-to-measure-retail-forex-market-sentiment/

Thanks enivid.

 

[Ary Barroso]

It is called trading against the retail market sentiment and is one of Sentiment Analysis strategies. We have written about Sentiment Analysis in these blog posts:
http://www.earnforex.com/blog/how-good-is-sentiment-analysis-in-forex/
http://www.earnforex.com/blog/how-to-measure-retail-forex-market-sentiment/

This is the 1st time when I have heard about this type of terminology. Thanks for your links mate.