Underwriters & manipulators use the same dirty tricks all the time. They dont need to change their tactics b/c most traders have been taught to ignore fundamentals anyway. examp if it's a big ATM & they're expecting low volume, 95% of the time they'll gap it up & dump at the open
So on those u wanna be early, with ur set risk levels, and not afraid to remove liquidity (slam the bid) or chances are u wont get filled at all. those are some of the best faders b/c its pure tankage right out of the gate, and many shorts are clogging the offers waiting for pops
In other scenarios, for examp if they're close to their freedom price, need to raise the baby shelf ceiling, or need to put warrants/converts in the money etc, 90% of the time they ll squeeze it higher first and try to close as high as possible. On those u DONT want to be early
Those are usually the multi day runs or the late day faders. Volume forecast would save my ASS on those b/c it is the earliest warning sign that they're up to fuckboy shit, since they cant prop the stock higher without first accumulating shares (which raises volume WAY too fast)
I can go on and on about the different tricks they use and when they use them, but at the end of the day those are all just tools to help u frame ur thesis & increase ur RR or winrate. You can know all this and still blow up. Execution is far more important than the thesis itself
So instead of obsessing about what they're up to, first focus on mastering ur setups & risk management skills. Trading should be applying fundamental analysis (F.A) to increase the winrate of ur TECHNICAL setups, not using F.A to justify stubborn trades.
#BearTipOfTheDay
#BearTipOfTheDay
