If you now ask yourself how those big budget players (also known as the Smart money) manipulate the market, here is one example:
The British Petroleum (BP) oil spill disaster in 2010: The New York Times and the Time Magazine wrote about bankruptcy - the BP shares fell immediately from $61 to $27.
The average investor panicked and sold their stocks.
The Smart money bought the valuable stock on its lowest point. Then the price of the stock almost doubled within 3 months, which meant almost 100% win for the Smart money. They call this procedure a "shake out."
They basically scare the public with dramatic news in various media outlets and make everyone sell while they gobble up shares for their own accounts.
If you now think – I hate the Smart Money, they are stealing my money – don‘t.
Even the Smart Money has a weakness, you only need to know how to use it to become rich alongside the big players.
Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. You may lose more than you invest. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. The information on this website is intended as educational in nature and we do not recommend that you buy or sell any specific financial instrument.
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