You must know this aspect of trading stocks to be succesful – you cannot beat the big guys, so you have to understand what they are doing, and take advantage of it – if not, there’s a good chance you are the one being taken advantage of.
The markets would be a little less frothy if all traders understood this concept.
These two articles talk about the Wyckoff Accumulation and Distribution phases:
https://tradingcoach.co.in/richard-wyckoff-accumulation-distribution-phase/
https://stockcharts.com/articles/wyckoff/2015/06/accumulation-phase-absorbing-stock-like-a-sponge.html
Here is a real life example of a stock that is in the accumulation (buy) phase.
https://www.reddit.com/r/pennystocks/comments/14tyv96/worth_a_spin/
These phases are easy to see (and make happen) with small stocks with little volume, to the point where a single trader (me) can accumulate. Bigger stocks on the NYSE take bigger firms to control the phases.
I will repeat, if you do not understand this and take advantage of it, there is a good chance it is taking advantage of you.
submitted by /u/CoconutLife to r/RobinHoodPennyStocks
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