I received some questions asking me to elaborate on common tactics of institutional traders.
In this lesson, I go into depth about why the volume surges right before market close are nothing less than attacks against amateur traders and their ability to react to the market.
Would you rather try and dodge a ball thrown at you, or a bullet shot out of a gun? Unless you’re Superman, you would rather try and get out of the way of a slower moving ball than a super fast sub-sonic speeding bullet. The reason is that you have more time to react. Trading is the same way. The more time we have to study a chart and react, the better decisions we make. Institutional traders have compressed the time we have to act down from hours, to just a few minutes.
In the video below, I sketch to better illustrate what is taking place before market close and why you need to be aware of this for your trading next week.