RE:Trading In a nutshell from a guru
The preparation of an important move in the market takes a considerable time. A large operator or investor acting singly cannot often, in a single days session, buy 25,000 to 100,000 shares of stock without putting the price up too much. Instead, he takes days, weeks or months in which to accumulate his line in one or many stocks. Source: Wyckoff (1937) Instead, heres how he sets it up: first, hell shake out the little guys by forcing the stock lower in order to get a better price.....He prefers to do this while the market is weak, dull, inactive and depressed. To the extent that they are able, he, and the other interests with whom he works, bring about the very conditions which are most favorable for accumulation of stocks at low prices When he wishes to accumulate a line, he raids the market for that stock, makes it look very weak, and gives it the appearance of heavy liquidation by sending in selling orders through a great number of brokers. Source: Wyckoff (1937)