How do you profit from the market if you can't track big operators' action? Personally, i think that the stock market is a big deceptive scam yet a lucrative business. A lot of work is done to flush and tire out weak holders to make sure they profit nothing or profit a little instead of allowing them to ride the entire trend and cash in the big bucks.
See the chart above. See the ovals and phases i indicated, from real buying to markdown. All of these are not designed for retail punters to make money. During the real buying phase as you can see, the prices is neither up nor down. Not much money can be made from it. The purpose of this phase was to keep out retail punters so that they will shift their focus into something else. However, if you understand the mindset of the big operators like i do, they were secretly buying because they had some non public information that could allow them to profit handsomely from the stock.
True enough good news was released and prices start to markup. During this phases, the big operators created a huge amount of activity to entice and lured the public into this stock, so that the public will start buying which pushed the prices further up. So for example, if the big operators bought at 1.28, the public would help them to push the prices further to 1.5 then to 1.8 which was their final objective. During the whole processes of pushing, the big operators were also at the same time taking profits which was hidden from you. By taking profit, they were distributing/exchanging the stocks they bought at 1.28 to those who were willing to purchase higher from them at 1.5 and 1.8. That's where the public and mass came in thinking that this stock was going higher. Of course, i could read their mind that the bubble is about to burst. Psychologically, think about this, if you could buy the stock at 1.28 and now it had risen to 1.5, you are emotionally fed up. You must be thinking that you could have got it at 1.28. You hoped and prayed for a reaction and there was none and you were afraid that you might be buying at the very high point where the bubble was about to burst. So you wait and see.
So the stock dipped from 1.85 to 1.73, and that's where you thought its time to buy and you started buying and hope that the stock would continue to fly. The stock dipped a little next day and rally for two more days. Greed and fear sets in and you hoped it will go higher before releasing. The stock stopped moving higher and you are disappointed, so you continued to pray and hope. This is a phases i call artificial buying where big operators created a maneuver to mislead the public that the stock is trending higher. During this phases, the big operators had taken all their profits and started short selling, while the public still prayed and hoped that the price will trend higher.
A lot of buyers were trapped and boom, the stock spiral down. The public lost confidence in this stock and were very depressed. Margin calls, force selling start to set in and hard earned money was lost. During the selling phase it created a desperate situation where the public had to sell at all cost so that their lost was minimized and that's where the big operators started buying again because of the cheap prices offered during the panic selling and the cycle goes on.
I hope I offered you the insights of how an operation starts and ends, so you are able to profit from them the next time.
Ronald K
