Average Net Profit

Average Net Profit

Average Net Profit

A simple scheme exists to invest with medium-term holding periods for a net profitable expectancy. This one involves exploiting high volatility off bear markets with respect to liquidity common sense.

Liquidity Logic

For every sell order, initiated by either a retail or institutional trader, someone must stand on the other side to accept the transaction (i.e. provide liquidity). With each bull market, increasing numbers of public investors look to become shareholders of various corporations, pushing prices up along the way, and vice versa for bear markets.

Like most resources on Earth, the number of public buyers remains limited and as initiated buying orders slow down so do the stock prices. Liquidity squeeze then commences as the amount of willing buyers lessens, forcing sellers to settle for lower prices.