You and I are a dying breed...
It's estimated that only 10% of trades are made by actual humans choosing to buy or sell a stock. Another 40% of trades are passive… meaning investments in ETFs that track an entire index or sector.
The rest of the volume? Well, that's where the computers and algorithms come in…
As an ex-hedge fund trader, I witnessed the rise of the machines firsthand. And I'm glad I did, because it gave me insight into how they trade. In fact, the trades algorithms make are quite predictable, which means we can position ourselves in stocks that are about to be bought up…
That's how I'm able to regularly countdown when a stock is about to explode higher. This year alone it pinpointed a 615.4% gain in 16 days… 483.3% in 13 days and 330.8 in 14 days.
One thing you should know about most algorithms and institutional investors is that they have a very simple screen to know if a stock is in 'buy mode.' I often use this screen myself, and don't bother going long stocks if they don't meet this criteria (you can watch my training on the topic here).
I'm talking about the 50-day moving average (MA). Most automated buy/sell programs only go long stocks trading above their 50-day MA. And on the flip side, they often sell stocks that fall below that level.
That's why it's a huge edge to only trade stocks that are above their 50-day to the long side. It's proven to increase profits, decreases risk and improves my overall win-rate because there's a much better chance that BIG MONEY will pump millions of dollars into the stock.
And remember, that's what makes stocks move higher. It's not earnings, cash flow or news that moves price, it's demand for the stock. So if you want to stack the odds in your favor that a stock you own will have demand from institutional investors and algorithms, stick to stocks trending higher and above the key 50-day MA.
Check out this trade I was able to time thanks to the 50-day moving average and a volume spike:
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