Short Term Trading Week Starting: 22 Feb, page-186

  1. 13,333 Posts.
    lightbulb Created with Sketch. 93
    This is how the market works now a days ...
    • Moves in the market begin with the smart money quietly buying up shares of stock in a particular company. They may have insider knowledge about a future development in the company.
    • Months go by and the public first starts to hear about the stock. But they do not buy yet. The smart money continues to accumulate shares of stock.
    • Then you begin to see the print media doing articles on the stock. The public begins to talk about it on the internet. They buy a few shares.
    • The hype begins. The smart money has already loaded up on shares so now they try to sell them off to the public to make a profit.
    • Full hype mode! The stock makes the front cover of magazines. All the financial gurus begin talking about the stock and the public begins buying shares in large quantities.
    • The smart money takes their profits, there is no one left to buy, the stock tanks, and the public loses money.
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.