A successful self trader – Rule # 9
Before getting into any trading or investment position, it makes sense to check out what the men in the know are doing. Try to check out what the directors and promoters of the company are buying. Also check if global institutions and mutual funds are trying to go aggressive on either side. Track the bulk deal and block deal patterns and the ownership changes to pick up useful signals before investing.
What are informed investors doing?
Informed traders give you the best clues about any stock. Back in 2009, before Satyam owned up to its massive accounting fraud, a group of very large institutions had been silently offloading their long positions in the stock. Not only some of the men in the know exited the stock, but many also made a fortune by short selling the stock just before its disastrous fall from grace. Continue reading
