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How Smart money acts on an opportunity ....to enter or to exit.
How Smart money acts on an opportunity ....to enter or to exit.
As a very first point, be aware that smart money is someone who wants to generate maximum returns for his money.
One can generate maximum returns by buying big at the least possible price & exiting at the maximum possible price.
One can generate maximum returns by buying big at the least possible price & exiting at the maximum possible price.
Smart money is, most of the times, aware of the growth story of the company.
Hence it prepares a well thought strategy first to buy big at least possible price.
How strategy works .....
Hence it prepares a well thought strategy first to buy big at least possible price.
How strategy works .....
Milestone based strategy
1. Alignment with company management
2. Alignment with stock dealers & fund managers
3. Accumulation
4. Make the story famous
5. Distribution
6. Exit
1. Alignment with company management
2. Alignment with stock dealers & fund managers
3. Accumulation
4. Make the story famous
5. Distribution
6. Exit
Be in alignment with the company management as well as few top stock dealers & fund managers.
By aligning with the management, it's certain that the smart money know that there will be few months before the good triggers are visible on ground to everyone.
By aligning with the management, it's certain that the smart money know that there will be few months before the good triggers are visible on ground to everyone.
Now starts the accumulation phase in alignment with stock dealers & fund managers. These will act as a team.
As a first point, they will absorb the selling from weak hands.
As a first point, they will absorb the selling from weak hands.
Once the team has a reasonable quantity, they will work from both sides (buy & sell), to generate negativity about the stock.
More the negativity, more the dullness, more the boring phase in the stock...more n more weak hands will exit out.
The team achieve another milestone.
More the negativity, more the dullness, more the boring phase in the stock...more n more weak hands will exit out.
The team achieve another milestone.
Now comes the fundamental phase of the story.
Company publishes first set of numbers that generate significant interest from many small investors.
Few research reports will come out from the team. This will make sure the story turns reasonable famous among many investors.
Company publishes first set of numbers that generate significant interest from many small investors.
Few research reports will come out from the team. This will make sure the story turns reasonable famous among many investors.
Now starts another accumulation phase in alignment with stock dealers & fund managers. These will act as a team
As a first point, they will absorb the selling from weak hands
They will work from both sides (buy & sell), to sell big and then buy bigger ..& accumulate much bigger
As a first point, they will absorb the selling from weak hands
They will work from both sides (buy & sell), to sell big and then buy bigger ..& accumulate much bigger
Company publishes another set of good triggers. Few more research reports come out and investors are lapping the stock in a phase of FOMO.
This is where the team acts another smart way by starting to distribute their partial holding. Usually block deals happen with extended team
This is where the team acts another smart way by starting to distribute their partial holding. Usually block deals happen with extended team
Story is almost at it's peak of being famous have created a sense of euphoria.
This is where the smart money offloads / distributes significant quantity to small unknown investors.
This is where the smart money offloads / distributes significant quantity to small unknown investors.
If the story is continuing further, smart money would keep the holding intact within the team & extended teams.
Else they would just exit out at the peak of euphoria by steady distribution.
I may be right or wrong in these thoughts, but this is my observation & understanding.
Else they would just exit out at the peak of euphoria by steady distribution.
I may be right or wrong in these thoughts, but this is my observation & understanding.
Adding few more points.
When the accumulation starts happening steadily, it starts showing on the consistent delivery based data.
And this trigger a pointer for technical charts.
When the accumulation starts happening steadily, it starts showing on the consistent delivery based data.
And this trigger a pointer for technical charts.
Towards the fag end of accumulation, volume picks up in momentum so as to absorb all the possible available quantity.
This is the final trigger for technical charts to confirm the action.
This is the final trigger for technical charts to confirm the action.
All these actions happen in both type of stories viz. genuine & rigged.
Genuine ones give great returns to the growth investors, value investors & traders.
Rigged ones trap everyone beyond a certain point.
Read thread again to develop better understanding.
Genuine ones give great returns to the growth investors, value investors & traders.
Rigged ones trap everyone beyond a certain point.
Read thread again to develop better understanding.
