A hunting party cleared the stops in AKTS stock on Friday, November 8, 2019. In true jerk fashion, well financed large players cleared the stops and destroyed a lot of retail traders in the process.

The chart is worth a thousand words:

AKTS stock in the daily time frame shows large players cleared the stops on November 8, 2019.

What happens is that well connected large players or institutional traders will get together and form what insiders call a “hunting party”. This hunting party will push down a stock to a major stop-loss level to trigger even more selling in the stock. The hunting party then buys the stock back at a deep discount and the stock goes right back to the level it was at before the hunting party attack. The difference is, the hunting party are the major share holders now while the smaller retail traders all got stopped out.

This is why I advocate never setting hard stop-losses with your broker. Instead, use a mental stop which is a secret stop-loss level that only you know.

If you’re not in the stock, you can go long the stock when the hunting party starts buying back the stock. The price action happens quickly so you need an AI scanner to scan all stocks for hunting party buybacks. Here is a tool that will help you do that. In the chart below, notice where the tool gave a price alert (yellow lines).

Traders who followed the alert made +13.6% if they booked profits at the end of day. Check out this awesome tool for playing hunting party buybacks here.