Smart Money

M

mr_byte31

I was reading in "Street Smarts: High Probability Short-term Trading Strategies"

Lind had a chapter in the book about identifying the institutions money.

She gave example about identifying the change in stock price in the first hour (emotions of normal people) and compare it to the change at the last hour of the trading session (institutional money = professionals ).
her example was on DOW not a certain stock.

with this simple technique she could identify somehow reversal in the trend!

My question here, is there other things that can be done to identify the professional traders and see if they are interested in a certain stock or not ?

I am not talking about the cycles of stock ( accumulation, trending , distribution , .. )

I am talking about short term trades !
 
Smart money and dumb money are a bit of a myth anyway, a diversion from the real game. It takes big money to move prices on big markets. I'm not so dumb as to think I'm smarter than the clever boys and girls in the City or on Wall Street.
 
the accumulation, mark up, distribution, mark down cycle.

this is not exact science.. but there is always an agenda, a back ground driving force.

e.g. right now the SP is forward yielding 6%, about 2X of other assets of comparable quality.

smart money will not announce this to the public. they usually use the media machine to blow smokes, so they can accumulate chips... and when there are no more chips at the very bottom, the price has to go up, but they will accumulate more while shake off the maximum number of short term speculators..... this is what's going on right now, and for the foreseeable future.

need to put together a grand story like this, then making money is like swimming with the current.
 
mr_byte31 said:
I saw many cases when price go down before earning and shoot up after earnings.
I don't think this idea work.
anticipation of earning is gambling !
More...
Not exactly.. Price spikes almost always stabilize and keep the same direction afterwards. You have to be good at calling tops and bottoms to take advantage of such momentum. Let me show you a case of this exact scenario. This isn't an earnings event but an example of calling a bearish price spike bottom within a bullish market.

alphatrader33.PNG

You have traders out here that say that this type of trading is way to risky or even gambling but it's more of an art form. Getting that perfect entry with confidence.
 
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IAlwaysWin said:
Not exactly.. Price spikes almost always stabilize and keep the same direction afterwards. You have to be good at calling tops and bottoms to take advantage of such momentum. Let me show you a case of this exact scenario. This isn't an earnings event but an example of calling a bearish price spike bottom within a bullish market.

View attachment 191058
You have traders out here that say that this type of trading is way to risky or even gambling but it's more of an art form. Getting that perfect entry with confidence.
More...
what is this graph on the right side?
 
dozu888 said:
the accumulation, mark up, distribution, mark down cycle.

this is not exact science.. but there is always an agenda, a back ground driving force.

e.g. right now the SP is forward yielding 6%, about 2X of other assets of comparable quality.

smart money will not announce this to the public. they usually use the media machine to blow smokes, so they can accumulate chips... and when there are no more chips at the very bottom, the price has to go up, but they will accumulate more while shake off the maximum number of short term speculators..... this is what's going on right now, and for the foreseeable future.

need to put together a grand story like this, then making money is like swimming with the current.
More...


I didn't get your point about yield !
what does this mean ?
 
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