A Former Wall Street Trader’s Secret to a Smart Money Portfolio

Kristin Orman By Kristin Orman
Research Analyst, The Oxford Club

Retirement Planning

As a former professional trader, I’ve found a number of strategies to jump-start my retirement savings.

I started my Wall Street career at the institutional trading desk of a boutique brokerage firm. Each day, the country’s largest hedge funds and mutual funds sent me orders to buy or sell hundreds of thousands, sometimes even millions, of shares.

It didn’t take me long to realize that many of these large funds trafficked in the same names. Groups of two or three institutional investors consistently bought and sold the same stocks around the same time.

Initially, their trading activity typically didn’t move a stock much. But it was correlated with big moves in the share prices a few weeks or months down the line.

These professional investors seemed to know when a stock was about to rip higher. They always got in before the stock began its ascent to new highs.

We dubbed these big institutional buyers the “smart money.” Many of us pocketed thousands of dollars every week by following these funds in and out of stocks.

Unfortunately, very few small investors have access to this information. And they’ve been unable to cash in on these smart money trades… until now.

Loose Lips Sink Smart Money Ships

You’ve probably heard many of the talking heads on television discussing where the smart money is invested. But you may not know exactly what that means.

Smart money is simply a big chunk of capital that is invested in the market by in-the-know investors who have long track records of successful trades.

Professional investors like mutual fund and hedge fund managers typically control the smart money. But unless you work on a trading desk, you don’t find out where they’re investing it until well after they’ve established their position – and the stock has made its move.

That’s because smart money is also quiet money. Investors don’t tell the public what they’re buying until they’ve completed their position. This way, they’re able to buy the stock at the lowest possible price.

As a sell-side trader, my hedge fund clients swore me to secrecy. I wouldn’t dare talk about the moves they were making to the media or other clients. The consequence of breaking this pact would be the loss of a very lucrative commission stream.


Smart money doesn’t pay loose lips, so no one discloses their business. That’s why the vast majority of their moves go undetected.

By the time you find out about the trade, it’s too late. “Me too” investors have already crowded into the stock, pushing the price higher and higher. Wall Street analysts have jumped on the bandwagon, issuing one positive rating after another and adding even more momentum to the stock.

By then, it’s too late to eke out much more than a fraction of the smart money’s gains.

But The Oxford Club’s Chief Investment Strategist Alexander Green and his Research Team have discovered a way to track these hidden smart money flows. He calls them “Cash Waves.”

Pulling Back the Smart Money Curtain

A large buyer can quickly move a stock’s share price because market makers and sellers will raise their offer prices in anticipation of a flood of orders.

That’s why many of these institutional trades don’t happen on a typical trading desk or electronic market. They happen in hidden markets where millions of shares exchange hands… out of sight of regular investors.

Trades in these hidden markets barely move the stock’s price, so the smart money can maximize its profits. These trades happen behind the scenes every day.

Alex has developed a strategy using obscure data to track these Cash Waves. He and his team track more than $25.3 trillion in institutional buying, including the hidden markets where 241 billion shares are traded a year.

And Alex has just identified 10 more Cash Waves. One of them could be worth more than $80,000.

Alex is revealing these 10 incredible investment opportunities in his newest presentation.

He’s pulling back the curtain on the smart money’s moves and leveling the playing field for regular investors.

Good investing,

Kristin

P.S. To learn more about The Momentum Alert and how you can profit from tomorrow’s Cash Wave, click here now.