Common Signs of Institutional Trading/Buying?
Is it possible to recognize when institutions are buying into a stock? What are the common signs? Do institutions try to push prices of volatile stocks down to re-enter at a lower price? (i.e activating stop-losses kind of things)
I've been looking at certain weed stocks and have seen a few $1 Mil+ buys on lvl2 stock quotes but it seems more like some rich guy buying in. I know there are some institutions buying that hold positions in weed stocks but not very many
Anything helps
A lot of big orders go through agency executions and the traders that execute on behalf of pension funds, hedge funds and etc, ensure clients order aren't exposed in the market... so people like you don't pick off their trades. As a discretionary trader, there's no way you'll catch these movements to generate alpha. Instead, I recommend actually having your own strategy instead of putting on traders to ride the wave... I used to work on the prop desk, trading cash equities and vol products and now I'm at a bulge bracket and I see trades going through my screen all day, orders of $50mm+ from institutions and I would have never caught it from looking at the charts.
Long story short... have an actual strategy, don't pick off trades, it won't work.
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