So funky, on good news we wait to see the sp & volumes gain and take the profit as a sell, because the 'Smart Money'(however they are identified) is going to do that and you too could be a SM person if you follow the game. The SM set have already bought in during a low volume retreat previously and are only interested in making money in high volume/sp rises. They then await the next low volume/sp retreat.This could be on the same day or not.
Presumably the retreat sometimes is in volume but not sp. In this case the SM buys in even if it is very close to, at or just above the previous sell position as it signals support at that sp. (like our .057 to other day).
I suppose that is called a basic Day-trading approach. What if a lot of people not interested in day trading just want in or a large institutional investor wants say 2-3 million dollars worth in a single hit. This could well happen of course at any given point. AIM listing (for eg) could see this happen, literally overnight.
The logic seems to suggest that the losers here are undisciplined or more likely unconnected investors (without the clout to make a difference). Then again they could just not be good at reading the signs.
Your posts do warn us to be careful and this seems to be with some merit. I would presume that such market gamesmanship, relying as it does upon certain patterns, is only open to question when something from left field impacts (like a rerating or large scale investment). No one would want to be out then. So I suppose the advice would be to be in more often than out and not to set parameters that meet with your appetite.
The mum&dad label still concerns me. Why not say savvy/not so savvy investors. All's good. thanks for the points raised. (Still learning).
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