How institution accumulate their shares?
How to find institutional accumulation shares
Accumulate meaning in share market:
1. Spread Bad news about the company
2. Start to accumulate shares slowly from Public.
3. When stock tries to surge, they don’t see the value proposition; then will sell shares to bring the price down.
4. Try to absorb all the stocks from the Public.
5. Finally, the “shakeout day” will come where all long term investors, pension people would give up their final shares.
6. Then in the market, no shares to sell from the Public, all the shares are held with the institution.
7. If no one is there to sell automatically, demand will increase the price will start rising.
Tata Motors Ltd is an excellent example…. 70% rise in 3 months? Do you think any fundamentals changed in the company?
80% of retail traders would give up in one year, remaining 19% in another three years, .9% lifelong they do trading but without earning anything & .1% is the real traders who would understand the market.
“When everybody thinks alike, everyone is likely to be wrong.”
Contrary thinking. The only way to survive in the market is to take it seriously & understand it.
Want to learn to understand practically, how institutions accumulate a large number of stocks at wholesale prices, and markup stage and Distribution stage, where again institution sells a large number of stocks at retailers and decline stages, try to attend a free demo or visit advance technical analysis training course content page.