How do large funds and traders scale into a position and hide their trades? It seems like when you have that many shares to buy that people would front run your orders and make it tough to put on a sizeable position. Wasn't it Steve Cohen who admitted to placing fake trades in one direction oto throw off the people following his firm?
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How does Warren Buffet scale in and out?
- Thread starter bontrjd
- Start date
Quote from bontrjd:
How do large funds and traders scale into a position and hide their trades? It seems like when you have that many shares to buy that people would front run your orders and make it tough to put on a sizeable position. Wasn't it Steve Cohen who admitted to placing fake trades in one direction oto throw off the people following his firm?
OPTIONS . Leaps. They exercise those.
They are like cruise ships, you can see them turning with your basic indicators like MACD, Stochastics and Moving averages. Most of thier stuff is open knowledge. Moneyflows and Accumulation / Distribution indicators help.
I understand that part of it, but take BNI for instance. If Buffett is going to buy 10 million shares, I wonder what the strategy for building a position quietly over time is. That's all. Not a problem I have obviously, but I am curious because it must be an entirely different ballgame for such a large holding.
first of all, they have trader(s) whose sole job it is to work the orders
basically, they accumulate over time
that's how institutions trade (it's also how i often try to trade) ... accumulate on weakness
many institutions, large traders (heck, some small d00ds too) establish a position and add to it over MONTHS.
it's a totally different mindset
buffet also is a deep value player, and when you are buying stuff like that, it's GOOD when the price goes down, cause you get more cheaply.
basically, they accumulate over time
that's how institutions trade (it's also how i often try to trade) ... accumulate on weakness
many institutions, large traders (heck, some small d00ds too) establish a position and add to it over MONTHS.
it's a totally different mindset
buffet also is a deep value player, and when you are buying stuff like that, it's GOOD when the price goes down, cause you get more cheaply.
Quote from whitster:
buffet also is a deep value player, and when you are buying stuff like that, it's GOOD when the price goes down, cause you get more cheaply.
Buffet is a value investor. Some mutual funds beat the pants off this guy for yearly comparisons. For example
CACFX has performed 56% YTD returns while BRK.A hasn't done less than 10% YTD.
This guy is lots of publicity and good PR.
They pay for anonymity. They use a bevy of institutional brokerages and they donât want their hands tipped so they know who they give what orders to and if what theyâre doing hits the street they never send another order to that desk. The desks respect that cause they want the business.
Forget the calls and puts the volume info is useless since you donât know from just volume whether theyâre opening buys or sales or vice versa and you donât know if theyâre doing stock with the options for a synthetic.
Forget the calls and puts the volume info is useless since you donât know from just volume whether theyâre opening buys or sales or vice versa and you donât know if theyâre doing stock with the options for a synthetic.
Quote from xflat2186:
They pay for anonymity. They use a bevy of institutional brokerages and they donât want their hands tipped so they know who they give what orders to and if what theyâre doing hits the street they never send another order to that desk. The desks respect that cause they want the business.
Forget the calls and puts the volume info is useless since you donât know from just volume whether theyâre opening buys or sales or vice versa and you donât know if theyâre doing stock with the options for a synthetic.
The stock shows accumulation/ distribution right away. Indicators lit up like light bulbs. You can tell if a cruise ships is turning or not.
Xflat, why are you so dumb ?