Each may come from a different Market Participant Group, and there are now nine of these groups in the stock market including giant Institutional Investors which are giant Mutual and Pension Funds, Wealthy Individual Investors, Corporations, Professional Traders, High Frequency Traders, Small Funds, Retail Traders, Small Lot Investors, and Odd Lot Investors.
It can also be on a downtrending stock because the seller is afraid that the stock is going to move down more, and they have been holding through what they thought was a short Retracement. Most of these orders will be Sell At Market SAM. Sell Short Traders are anticipating that the stock is going to move down, and can place a variety of orders just like the buyers. Buyers and Sell Short Traders are both entering the trade. Buy-to-Cover and Sellers are exiting the trade. It is the mix of these kinds of buying and selling, coupled with the kind of investor or trader and the size of their share lots that causes money flowing in and out of a stock.
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So money flowing in and out of a stock is constantly occurring and every time you take a position in a stock, there are three other positions at the same time in that same stock. You need to be aware of each of those, and make sure that you are with the right group. Most of the time, traders who are having problems with their trades are in the wrong group.
Smart money which are the large lot Mutual and Pension Funds have their own agenda that has little to do with the small lot Independent Investor and Retail Trader. They are not aware of you, so keep your trading in perspective. This is a huge advantage that most Independent Investors do not appreciate, because being invisible is a good thing. Trading as an individual is a good thing too.
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