Have you ever wondered what drives institutional buying?
We'll give you a hint... it's not from greed.
Roger, being a former fund manager, let us in on the secrets...
The main job of a fund manager (or institutional trader) is to preserve capital by decreasing risk..
And then the secondary goal is to out earn the S&P.
But if they take on more risk than the S&P, people will pull their money from the fund...
So here's what happens in short:
- Institutions make their first buy
- The stock shoots up
- Eventually, like all stocks, it comes back down
- Institutions have to keep clients happy, so they buy again
- Results in the stock shooting up again
Roger's spotted a way to catch the ride of the second stock shoot-up..
And he say's it's so predictable "you can set your watch by it"
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