Big investors mean mutual funds, big corporate and banking institutions and others like them who literally dictate the market prices by their buying and selling decisions.
Its known that these investors use complex mathematical formulae to decide the time and price when they will buy stocks (and for which companies) and the time when they should sell. Among other things, it relies on listing criteria (QQQ stocks rate higher, for example), credit/investment ratings by reputed agencies (Moody’s, S&P etc) and corporate results (ratios etc).
Does anyone, who is actually involved in this or is knowledgable on this, can shed light on how the big investors track their portfolios?
I may be wrong, but at least in our markets, none of the sophisticated 2 pager formulae work i tell ya faisal!
Fundamental analysis aka stock valuation may ‘help’ but it can never help investors earn decent returns on their trading portfolios…us main to herd mentality kaam aati hai..ya phir technical analysis-support/resistance levels and so on.
They may use specific programs to do some historical analysis to determine trends, look out for patterns matching the current one at the bourse, but any number of combos at the end of the day cannot predict the optimum timing to buy/sell. Yes, insider information may count though.
