Syndicate Club
Learn how to be Syndicate: What is Accumulation & Distribution ?
Speculator101
Publish date: Wed, 25 Mar 2015, 11:32 PM
Speculator101
0 9
The stock market revolves around the simple principles of accumulation and distribution, which are
processes that are not well known to most traders.
Perhaps you can now appreciate the unique position that the market-makers, syndicate traders, and other
specialist traders are in – they can see both sides of the market at the same time, which represents a
significant advantage over the ordinary trader.
processes that are not well known to most traders.
Perhaps you can now appreciate the unique position that the market-makers, syndicate traders, and other
specialist traders are in – they can see both sides of the market at the same time, which represents a
significant advantage over the ordinary trader.
Syndicate traders are very good at deciding which of the listed shares are worth buying, and which are best
left alone. If they decide to buy into a stock, they are not going to go about it in a haphazard or half-hearted
fashion. They will first plan and then launch, with military precision, a co-ordinated campaign to acquire
the stock – this is referred to as accumulation. Similarly, a co-ordinated approach to selling stock is
referred to as distribution.
Accumulation
To accumulate means to buy as much of the stock as possible, without significantly putting the price
up against your own buying, until there are few, or no more shares available at the price level you have
been buying at. This buying usually happens after a bear move has taken place in the stock market
(which will be reflected by looking at the Index).
To the syndicate trader, the lower prices now look attractive. Not all of the issued stock can be
accumulated straight away, since most of the stock is tied up. For example, banks retain stock to cover
loans, and directors retain stock to keep control in their company. It is the floating supply that the
syndicate traders are after.
Once most of the stock has been removed from the hands of other traders (ordinary private
individuals), there will be little, or no stock left to sell into a mark-up in price (which would normally
cause the price to drop). At this point of ‘critical mass’, the resistance to higher prices has been
removed from the market. If accumulation has taken place in lots of other stocks, by many other
professionals, at a similar time (because market conditions are right), we have the makings of a bull
market. Once a bullish move starts, it will continue without resistance, as the supply has now been
removed from the market.
Distribution
At the potential top of a bull market, many professional traders will be looking to sell stock bought at lower
levels to take profits. Most of these traders will place large orders to sell, not at the current price available,
but at a specified price range. Any selling has to be absorbed by the market-makers, who have to create a
'market’. Some sell orders will be filled immediately, some go, figuratively, 'onto the books‘. The marketmakers
in turn have to resell, which has to be accomplished without putting the price down against their
own, or other traders’ selling. This process is known as distribution, and it will normally take some time
for the process to complete.
In the early stages of distribution, if the selling is so great that prices are forced down, the selling will stop
and the price will be supported, which gives the market-maker, and other traders, the chance to sell more
stock on the next wave up. Once the professionals have sold most of their holdings, a bear market starts,
because markets tend to fall without professional support.
More articles on Syndicate Club
Learn How to be sydincate: Random Walks & Other Misconceptions
Created by Speculator101 | Apr 13, 2015
Discussions
4 people like this. Showing 43 of 43 comments
my prediction .. GST mali.. olang mau main kicik ... jimat wang mah.. kikikiii
small counters yet volatile is the safest bet as now also benifit organic growth along side help unlock values ...
kikikiii
Professor Ah yam too sexy too wah.
Sekolah Chap Pondok.
2015-03-26 00:11
walao, kindergarten kids trying to write a phd thesis. laughdieme liao.
useless article.
2015-03-26 00:27
above article utilised writer imagination and totally non factual.
if u have not been a syndicate for 1 day dont try and imagine.
it is more complicated than accumulation and distribution.
2015-03-26 00:28
tak apa mah ... we are all student of bursa ...
we are all here to pok nasib ....
black cat or white cat
as long catch the rat is always a good cat..
kikkikikiikkikiiiii
2015-03-26 00:35
ayam, i would rather u write the article. at least i find it has ingredient. this is just roti kosong with the packaging says, real chicken meat inside.
2015-03-26 00:36
kokokokokkkkkkkkkkkkkk
hahahahaah ...adoi ... tau apatu private placement or off market trade bo ? accumulate in open market aaarrr ,,, cukup ticket masa ayam kokokok jadi burung terbang liau la or major share holder kayu aeh ka ... mean in most case la ,,,,,hhehehehehhehehe
2015-03-26 01:27
wakakaka. accumulate in open mkt...cow come home baby come out also not yet finish la. somemore accumulate in open mkt the owner will kill you by issue private placement or right issue.
wakakakaa. tats why i said newbie dont pretend to be sifu.
2015-03-26 01:29
ANY SCREENER TO SCAN THIS ACCUMULATION AND DISTRIBUTION????????? thanks
2015-03-26 07:08
but he posted the stock fly leh ... ESCERAM goes up and Top 10 volume today leh
http://klse.i3investor.com/blogs/SyndicateClub/73405.jsp
anyway I am still learning .. optimus must be old bird and eat a lot of money. you may teach us more and share more to us
2015-03-26 10:50
Betul... I am still learning and hope to learn from all the brothers and sisters here, pls forgive me and correct me if I am wrong
2015-03-26 22:07
all of you ....
olang buat salah cepat sangat kondem..
how to be experience
kalau no one teach properly
kikiikii
2015-03-26 22:09
even among the greeks there are discession
other greeks wouldnt be broke.. like was under King Leonidas
2015-03-26 22:14
true the world is at war
but ..
love , hope and faith
still exist
kkkkkkiiiiiiiiii
2015-03-26 22:15
Eric b7b ...when become b7 already?hihi b2b until b7b Liao,kiikiki
2015-03-26 22:19
there my guru i follow ..
ada naik one of elf sindarin stock.
learnt from one of the best
esceram up today... proven
now in dsonic
seluar buruk dalam tukar kasut kulit
kikiiiiiiiiii
Posted by mwong3 > Mar 26, 2015 10:50 AM | Report Abuse
but he posted the stock fly leh ... ESCERAM goes up and Top 10 volume today leh
http://klse.i3investor.com/blogs/SyndicateClub/73405.jsp
anyway I am still learning .. optimus must be old bird and eat a lot of money. you may teach us more and share more to us
2015-03-26 22:20
honestly i dont know what is esceram..
until it become world madness by this bro..
hihihi kikikiki :P
thank you for recommend me
if i see you in my prayer
i pray may you be healthy
thank you bro
hihihi
Speculator101
22 posts
Posted by Speculator101 > Mar 26, 2015 10:07 PM | Report Abuse
Betul... I am still learning and hope to learn from all the brothers and sisters here, pls forgive me and correct me if I am wrong
2015-03-26 22:24
hehehe, we already know LOng long time already, just I seldom log in I3 now ^
2015-03-26 22:25
in lorong haji taib
kikikii
eric_b7b
303 posts
Posted by eric_b7b > Mar 26, 2015 10:26 PM | Report Abuse
lol...u must know me in sumatec....
2015-03-26 22:28
Orang yang beli Esceram(sama juga kaunter perabut) tak lama lagi akan kena bakar hangus macam Dsonic tahun lepas.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1910957
2015-03-26 22:28
I got 3 id, last two lOng time no use Liao, forget wht id Liao,haha
2015-03-26 22:29
thanks to GST no..
eric_b7b
303 posts
Posted by eric_b7b > Mar 26, 2015 10:22 PM | Report Abuse
ayam tua, joel said tech stock in bubble..is that damn true?
2015-03-26 22:29
pretty sure any bakar bakar business refer to: CME
firefighting business recommended by Laotze..
saya pinya world acclaimed sifu cum master
truthseeker1
316 posts
Posted by truthseeker1 > Mar 26, 2015 10:28 PM | Report Abuse
Orang yang beli Esceram(sama juga kaunter perabut) tak lama lagi akan kena bakar hangus macam Dsonic tahun lepas.
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1910957
2015-03-26 22:31
what de h.....lorong hajib taib or brickfields?
ayam tua, response to statement below.
Joel My remisier forward sms to me.
科技股即将暴跌！
多点留意Industrial Products 的股项。
26/03/2015 21:57
2015-03-26 22:31
Ayam hia also l9ng time Liao lar, last time talk until midnight one,hege
2015-03-26 22:32
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
AyamTua
Pssttt.. Tips: Pworth, Glotec, CME, XingHe , TMS - pasti tuju langit!
2015-03-26 00:00