Jan. 23 at 2:43 AM
$IMTE that was happening last two days imo.
2️⃣ Liquidity Matters
• Stocks with high liquidity (lots of shares traded every day) are less sensitive to small trades.
• Stocks with low liquidity (thinly traded, small number of buyers/sellers) can move sharply even with small trades because there aren’t many orders to absorb the sale.
Think of it like water in a tank: in a big tank (high liquidity), taking a sip doesn’t lower the level much. In a small glass (low liquidity), the level drops noticeably.
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3️⃣ Market Psychology / Signaling
Sometimes even a small sale can trigger a larger reaction:
• Traders or algorithms may see a drop in price and panic or react automatically, selling their shares too.
• This is called a cascade effect — one small sale can start a chain of selling.
So sometimes the visible drop is larger than the trade itself would suggest.
