How institution accumulate their shares?
1. Spread Bad news about the company
2. Start to accumulate their shares slowly from Public.
3. When share tries to surge if they don’t see value proposition then they will sell their own 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 would increase price will start rising.
Tata Motors is the good 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 3 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.