With the recent market rebound, we see many stocks prices are moving up higher. If the investors are holding on to those stocks, then they will be very happy with it, and some investors might be thinking of moving back into the stock market. But do keep in mind that those who hear their friends or trading buddies boasting about the profit they are making from the stocks that they bought, it is because they bought it earlier at a lower price. If you get in right now, you might be entering at the high price and have the chance of getting trapped at the high price.
Before you decide to click the buy button, take a look at our sharing below and see if there is any big boys’ distribution price movement in the stocks that you are intended to move in. If there is, then you should not look into that stock anymore, because the big boys are selling their final holding of shares.
1) 1 price up, few price down.
2) Price up bit by bit every day, without any retrace.
3) Price up in the morning & maintained sideways throughout the day.
1 price up, few price down.
One of the common ways for big boys to attract buyers is to create the fear of missing out by giving investors hope. Especially in those stocks that many retail investors are trapped at high prices and wish to average down their cost.
Big boys will create a 1-day price up, to give you a false impression that the stock is going to rebound. Hence, the investors who got trapped or thinking of entering into this stock because of many reasons, including good news or reports that were published earlier, will start to jump into this stock.
However, retail investors will not buy at a high price, because everyone has their own “fair price”. Therefore, investors often park their buy order lower and hope for the price to go down to their “fair price”.
After the price goes up, big boys will slowly sell their shares to those retail investors who park at the lower price. After the price went up, like the image below, the price will then go down gradually every day, to avoid creating fear in investors.
Price up slowly everyday, without any retrace.
Big boys distribute shares on the way up. When they have distributed the majority of their holdings, the number of shares selling in the market becomes lesser. Hence, they don’t have to sell huge portions down to retail investors at buy orders like before.
Once you see any stocks having their price moving up gradually every day without any retrace, then you will know that the big boys left not many shares in their hands, which means the trend is about to peak.
Price up in the morning & maintained sideways throughout the day.
Retail investors often think that volume and price up mean bullish. But they have forgotten that the volume and price can be created by moving the shares, from left hand to right hand.
Morning is the best time to create such volume with price up, to attract investors in (especially for those who takes time to consider whether to enter into that stock or not).
After the price is up and maintained at the high side during the day, there will be on and off high volume buy transactions. But the price will not move up much and will continue to stay within that range to attract those retail investors who are fear-of-missing-out, to jump in again.
By doing so, they are actually creating a false signal to make the investors think that this stock is going to rocket up. Some investors who are holding this share will start to share it in their group chats saying things like “XXXX stock is soaring”. But if you look into it, you will then notice that the price changes sometimes are only 0.005 or 0.01.
Some investors might get too excited and jump in at this time. Some might wait and queue their buy order lower. This is when the big boys start to throw their shares out the next day for profit.
5 mins chart
Above are just some of the price movements that the big boys are getting ready to throw their shares out and the price might peak soon. So, if you see any of the above, you have to be careful. However, even without the above price movement, it doesn’t mean that the price will go up.
There are many more ways to identify dangerous stocks. If you understand how big boys operate in the market, you will be able to identify when is their accumulation and when they are getting ready to mark up the price through the price and volume data available in the market. And this is how you can ride with the big boys.
To understand more about big boys, click the link below to learn more about big boys operations from accumulation to distribution. You may also fast track your learning about the big boys operation with our upcoming training course.
Watch the videos in the link to understand how big boys work: https://bit.ly/2Velj7k
Understanding big boys: https://bit.ly/roundnsurge
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