What is a Bear Raid (BR)?
A BR is a strategy to push down the price of a stock. Only a big trader or a cartel of traders is able to do this. Many people will suffer devastating loss of money in a BR. Accordingly to security law, a BR is illegal and the manipulators can be fined or imprisoned.
In countries where short selling is legal, a BR usually commenced with short selling followed by heavy aggressive selling and the spreading of negative rumors. These activities cause the prices of the targeted stocks to plummet. When the prices have dropped to a sufficiently low level, the manipulators will buy back the stock.
If you are a proficient chart reader, you should be able to detect these selling and buying activities. The BR is the opposite of the Pump & Dump strategy. Savvy investors and smart traders are able to profit from these manipulations. Can you?
马 到 功 成. Success is when the horses come. Success goes only to those who dare and act, it seldom goes to the timid. The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails.
