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Smart money is considered to be traders or firms "in the know" and know where to place investment dollars to get the most 'bang for their buck".
I think that title "smart money" is not necessarily true of all those that the news, etc apply it to. The current insider scandels show that they are not really smart, you just know people or can "influence" people with "favors" to get early news on contracts,etc... Strategic, yes, but not smart enough to out smart the regulators and FBI.
I think smart money is money you and I put to work based on either good fundamentals, technicals or both. No one will make better decisions with our money than ourselves. So make your money smart by become a good trader.
over 2 years ago
Answers (2)
"Smart money" are said to be the funds placed by investors who have privileged information. Technical analysts say the "smart money" flow at times of consolidation. There, the investors/traders with the close information position themselves ahead of the market.
over 2 years ago
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You will also hear "smart money" referring to investors that the average investor believes is smarter than the average such as Warren Buffett, George Soros, etc.
over 2 years ago
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