Stock trading secrets: Finding stocks with major institutional investors

by bdy145 on 2009-07-28 09:46:09

1. The stock accumulation phase generally lasts 3-4 months.

2. During the accumulation period, the stock does not follow the sharp rises and falls of the overall market. If there's a sudden rise, the major player may suppress the price; if there's a sudden fall, it provides an opportunity for the major player to accumulate more shares. Meanwhile, the consolidation can make investors feel anxious and disappointed.

3. In the later stage of accumulation, the major player often tests the level of control over the stock.

4. A significant price increase does not happen immediately after sufficient accumulation. The best timing is when the overall market shows strength. With the market's support, even a slight increase in the stock price can lead to further capital boost. Before a major rise, due to the strong market condition, as long as the major player doesn't intentionally suppress the price and allows a slight increase, the stock will quickly surge upward.