Holding the Market

Holding the market is an illegal strategy that could potentially be used to stop a security from falling. The big problem is that this strategy may not even be worth it.

Holding the market refers to a person placing a large number of buy orders on a down trending stock, so much so that the stock finds support and potentially goes up. This may seem like a good strategy, but it has many downfalls.

1. It is Illegal, except for brokers who try to maintain the price of a security. This is a pretty big one. You cannot simply Force the Market to do whatever it is you want it to do.

2. It is hard to pull off. In order to place enough buy orders to affect the market you need to buy millions to billions of dollars worth of shares. Not many people can pull that off.

3. It comes with huge risks. If you are unable to stop a stock from falling you would stand to lose huge amounts of money. It is better to follow a trend and not to try to change it.