Anybody is welcome to attempt to out manipulate the manipulators, but the deck is stacked.
Is it true that institutional traders don't trade small caps or low floats?
- Thread starter BearTrades
- Start date
You will still be trading against the likes of so called gurus Timothy Sykes and Ross of Warrior Trading plus their legions of students trading the same setups. If you do not know the hell what you are doing, better to stay out and learn to trade first.
Also I want to make clear that I do not trade small caps..I saw a tweet on Twitter stating that institutional money doesn't get involved in small caps. Which means less competition, you just have learn how their manipulated. I just thought it would be an interesting thread. I swing trade large caps.
I bet they also don't start their responses with "Bro"
Heh... actually not true... some traders can have an Alpha-Bro personality type.
%%
LOL., OK+ that most likely depends on if they have a personal management style. [ It's personal, I remember the name of that co, the commercial trader traded, ticker =ANN=Ann Taylor. Sounds like they got bought out.....] NOT a stock tip.
So your advice is to go long on ANN?
Most of the larger hedge funds funds have an internal lower limit for market cap, usually anywhere from 25 to 100mm (depends on the market, e.g. EM markets would have lower market cap limits). On the other hand, mid-cap stocks are very popular with smaller long-short funds, it is supposedly easier to pick interesting stocks in that group.
who are the 'institutional traders? are you talking about market makers?
you mean professional money managers. they invest in small cap companies and startups
but for thinly tradedstock...why trade it? the market makers are automated now for 'small caps'
sure there may be some funds who 'trade them'
you mean bank or pension funds with 100 billion in managment ,,no they dont' waste time with thinly traded stocks that are illiquid. the 100 shares bids.. on $5 stock and only 5 guys bidding with less than $1000 on the bid tooooo illiquid to trade
you mean professional money managers. they invest in small cap companies and startups
but for thinly tradedstock...why trade it? the market makers are automated now for 'small caps'
sure there may be some funds who 'trade them'
you mean bank or pension funds with 100 billion in managment ,,no they dont' waste time with thinly traded stocks that are illiquid. the 100 shares bids.. on $5 stock and only 5 guys bidding with less than $1000 on the bid tooooo illiquid to trade
I think he died recently
Yup, no way, few hundred mils at the most (?)
Just speculations, probably will remain mystery for the rest of our lives, to wonder about, once one gets bored etc.