Dark Pool Trading: If You Follow These Guys, You're Going to Do Very Well

 

 

Dark Pool (DP) trading is a powerful tool for traders looking to gain an edge for success in the stock market.

What is Dark Pool? [Once called, "The Upstairs Room"]

First, let's start with the basics. 

Dark Pool trading is a type of trading that takes place away from the public exchanges. It allows large Institutions to buy and sell large blocks (typically 100K+) of stock without the Market knowing, and it allows them to take advantage of price movements without moving the stock's price roughly 5-10% in a span of a week!

Dark Pools are private exchanges that allow Wall Street's 'Big Boys/Smart Money" to buy and sell large blocks {500K+}, a special pattern, of stock without the need to publicly disclose their trades until 3 hours later.

This allows the Smart Money to take advantage of market inefficiencies and execute large trades without moving the market.

Now that retail traders have access to being 'tipped off' to the buying and selling activity of the large institutions, we can anticipate what stocks and ETFs are poised to make these moves, and then ride along with that momentum.

In the 1990's, a trader would have to work at a top Prop firm to gain access to this information.

Two things to know with Dark Pool trading:

1. 'Bullish Above' - a specific key level of a stock
2. 'Bearish Below' - a specific key level of a stock

This allows "no thinking" (Runaway emotions removed).

You have to be disciplined; Its not about the money.

The Stock Market is never rational; it makes no sense; we want it to go up when we expect it to, and it never goes down when we expect it to. This is why we have a 'no thinking' mindset. Because we don't know at first if the Dark Pool trades are buys or sells, there are levels that we know prices are going to.

One (of several) Dark Pool trades executed last week (3/27)

SQ 

DP was detected ~ over 1.2M shares

[The Smart Money always knows before any upgrades or downgrades]
We were bullish above $62.40~ entry
Target levels in place and dark pool levels met on the way up
- $70.07 2nd target.

Watch videos coverages of SQ trades 

(SQ Triggered Entry | SQ Hit 2nd Target)

Next week on our radar:
WYNN/ LVS -Two names seeing unusual DP Activity.

~ To Your Success

Suzan

Trading Risk Disclaimer

All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities.

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➤ This is a recent trade of mine that I've shared in the Trading Room.

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