6 Secret Currency Technique that Banks use to make Billions

Advertisements

4. Distribution

This is the third and final phase of their trading strategy. This is where the banks make the final push in the direction they want. Their previously hidden positions become plain here.
This is often the best time for retail traders to make profits. Assume the market now begins an uptrend, retail traders then try to follow the trend by buying. The longer the trend lasts, the more buyers there are. However, this is when the banks do what they do best: selling when the crowd is buying and buying when the crowd is selling. A term for this is contrarian trading. Banks start accumulating positions to prepare for the next trend, which is usually in the opposite direction.

Advertisements