If you want to make money in the stock market, then you need to know how to track institutional buying and selling.
When a big money player moves in or out of a stock, it can cause big swings in the price.
That’s why it’s important to be able to identify when these institutions are buying or selling so you can get in or out of the stock yourself.
In this article, we’re going to teach you how to track institutional buying and selling so you can make money in the stock market.
How to Track Institutional Buying
The first step in tracking institutional buying is to find out which stocks they are buying.
There are a few ways to do this.
One way is to look at the filings that the SEC makes public.
Every quarter, public companies are required to file a Form 4 with the SEC.
This form is a report of all the transactions that the company’s insiders have made in the stock over the past quarter.
Since institutional investors are the biggest buyers of stocks, you can often find out which stocks they are buying by looking at the Form 4 filings.
Another way to track institutional buying is to look at the stock’s price and volume.
When a big money player buys a stock, the price of the stock will usually go up and the volume will go up as well.
You can track this by looking at the stock’s price and volume over time.
If you see that the price of a stock is going up and the volume is increasing, then it’s likely that institutional buying is taking place.
How to Track Institutional Selling
The process of tracking institutional selling is a little bit more complicated than tracking institutional buying.
There are two main ways to track institutional selling: by looking at the stock’s price and volume, and by looking at the filings that the SEC makes public.
When a big money player sells a stock, the price of the stock usually goes down and the volume usually goes down as well.
You can track this by looking at the stock’s price and volume over time.
If you see that the price of a stock is going down and the volume is decreasing, then it’s likely that institutional selling is taking place.
Another way to track institutional selling is to look at the filings that the SEC makes public.
Every quarter, public companies are required to file a Form 4 with the SEC.
This form is a report of all the transactions that the company’s insiders have made in the stock over the past quarter.
Since institutional investors are the biggest sellers of stocks, you can often find out which stocks they are selling by looking at the Form 4 filings.
Conclusion
Now that you know how to track institutional buying and selling, you can use this information to make money in the stock market.
Just remember to always do your own research before making any investment decisions.
FAQs
Q: What is institutional buying?
A: Institutional buying is when big money players, such as investment banks, hedge funds, and pension funds, buy stocks.
Q: What is institutional selling?
A: Institutional selling is when big money players, such as investment banks, hedge funds, and pension funds, sell stocks.
Q: What is a Form 4 filing?
A: A Form 4 filing is a report of all the transactions that the company’s insiders have made in the stock over the past quarter.
Q: What is the SEC?
A: The SEC is the Securities and Exchange Commission, a government agency that regulates the stock market.
Q: What is insider trading?
A: Insider trading is when someone buys or sells a stock based on information that is not available to the public.
