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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: sean sanders who wrote (33089)3/26/2002 12:58:02 AM
From: sean sanders  Respond to of 52237
 
Smart money or just Supply/Demand

My question is why do a lot of people talk about 'the smart money' or the 'big guy' or the ones in the 'know' taking away money from the 'little guy', uninformed investor or what have you.

For example there are technical terms such as Bull trap or Bear trap. As if there were people out there that wanted to trap you into making a bad trade.

I mean so many people talk about how the smart money did this while so and so did that; therefor he isnt smart money. Or the smart money is taking the market down and suckering the little guys or dumb money if you want to put it literally.

I mean maybe its me or maybe I just dont understand things yet; but isn't this just a game of supply and demand.

For example; with the bull/bear trap. Maybe it's just demand drying up for that side of the trade that makes the stock drop back down/up. And then perhaps its also supply/demand that wants to bring it back to under that trendline. I mean maybe its not this 'big bad guy' that wants the price up and then once you are in the stock; short the stock so it comes back down so you end up losing. Again maybe its just supply and demand. Not enough buyers to keep the price going up so people sell because it really isnt a breakout.

Or considering the recent price action in the stock market. Maybe it's not just 'smart money' that is selling this market right now. I bet a lot of smart money has bought this market since september; or how else has this market gone up since then.

So is it really the 'smart money' that is making you lose money if the market or stock goes down? or is it just a function of supply and demand.

Sean