"Revealing the exit strategy of institutions: two unknown secrets, a must-read for retail investors!"
Before institutional investors exit their positions, they often master two strategies that are not well known to retail investors. First and foremost, we need to understand that institutional investors tend to gradually reduce their positions at the rebound high after a long period of rising prices.
Here are a few key points worth paying attention to for retail investors:
Characteristics of exit strategies: Institutional investors often initiate their exit plans by significantly increasing trading volume or raising the opening price. This initial upward momentum will attract a large number of follow-up orders, thus creating conditions for them to sell their shares at a more favorable price. Unlike retail investors, institutions cannot clear out all their holdings at once due to the sheer size of their portfolio holdings.
How the strategy is implemented:
After an initial rise, institutions may create market volatility, giving the illusion that they are actively absorbing market liquidity. They do this through rapidly alternating price increases and decreases, inducing retail investors to increase their market exposure. Institutions use this type of price manipulation to lull retail investors into a false sense of security, thereby encouraging them to accumulate larger positions. This strategic manipulation ensures that institutions can smoothly liquidate their holdings while avoiding a sharp market decline.
The second core feature:
While an institution's exit strategy is complex and varied, its second core characteristic can be succinctly summarized as: "Strong at the Top." This concept may seem counterintuitive, but it actually highlights that institutions tend to appear stronger when they are preparing to sell a position. Their ability to maintain market confidence while secretly dumping assets is critical. Institutions carefully monitor market sentiment to prevent retail investors from exiting prematurely, which could interfere with their plans to sell their shares at a better price.
A deep understanding of these strategies can provide retail investors with a significant advantage when navigating market complexities.
If you keep chasing the ups and downs and often get trapped, it’s because you don’t have the latest news in the currency circle and you don’t have a professional strategy! Follow and pin it to the top, where you can experience the feeling of lying down and winning for three days!
#币安合约锦标赛 #Mt.Gox将启动偿还计划 #BTC☀
