![]() This is where a scanner such as Dollar Ace can come in very handy. The reason for this is that it is the smart money or large funds who either know much more than you or have way more money than you and thus can affect the price and future demand and supply for a stock. However, a big factor in future price action is understanding what the “smart money” is doing or likely to do next. Those are all great concepts to understand how price has been moving and where it might move in the future. The stock gapped up 30% on the news, and options were up over 400 %! Someone always knows!Ī lot of beginner traders learn about charts and candlesticks when they begin trading. He talked about what he saw on the 19th of January to his subscribers and just 4 trading days later on January 24, it was announced that there was takeover interest in KSS. In fact, Ben spotted unusual options activity recently in KSS. Ben has been using the software for years and understands what to look for when the smart-money steps in! ![]() ![]() Unusual options activity such as this can be picked up by scanners such as Dollar Ace, which Ben Sturgill is an expert at using. Sometimes large options purchases can precede seemingly unexpected news. I believe that someone always knows something, and there is a way to potentially spot some of these activities. Now I don’t want to sound like a conspiracy theorist, but despite being illegal, I believe Insider Trading is far more common than is made out. Smart money traders are usually the people in the know, such as industry experts and large financial institutions. The dumb money is usually referring to retail traders who are inexperienced and might trade based on what they see on CNBC. In the markets, there’s the smart money and the dumb money. ![]()
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