in one or many stocks.

"
The word campaign is an appropriate one. Just like a marketing campaign or
a
military campaign, the insiders plan each phase with military precision, with
nothing
left to chance. Each phase is planned and executed using the media to trigger
the
selling. But how does an accumulation phase play out? In practice, it goes
something
like this:
An item of news is released which is perceived as bad for the instrument or
market.
The insiders grab the opportunity to move the market lower fast, triggering a
waterfall of selling, as they start their accumulation phase, buying inventory
at the
lowest prices possible, the wholesale price if you like.
The markets then calm as the bad news is absorbed, before starting to move
higher,
which is largely as a result of the buying by the insiders.
Two points here. First, the insiders cannot frighten everyone too much, or no
one
would ever buy. If there is too much volatility, with dramatic swings, this
would
frighten away many investors and traders, which would defeat the object of
the
exercise. Each move is carefully planned with just enough volatility to
frighten
holders of stock into selling. Second, the buying by the insiders may push
prices
back up higher again too quickly, so they take great care in ensuring that
inventory is
purchased in 'manageable' volumes.
.="" tp="" heigh="" class="calibre_49">Too much buying, would force
prices higher
quickly, so great care is taken, and is a further reason why the accumulation
phase
takes time to complete. It would simply not be possible to fill the warehouse
with
just one move lower. It simply would not work because the numbers are too
large.
Our simple examples in the previous chapter, were just to introduce the basic
principles.
What happens next is that anyone who survived the first wave of selling is
relieved,
believing the market will recover and they continue to hold. After a period of
calm,
more bad news arrives, and the insiders take prices lower once again, shaking
more
holders out of the market. As they buy again there is a consequent recovery in
the
price.
This price action is then repeated several times, each time the insiders
accumulating
more and more stock for their warehouse, until finally the last stock holders
give up,
and admit defeat. What does this look like on the price chart?