Smart Money: What It Means in Investing and Trading
Smart Money: What It Means in Investing and Trading Smart money is the funds that are under the control of institutional investors, central banks, fund, market mavens, and other financial individuals and entities. The term smart money was basically a wagering term which was referring to the bets placed by the gamblers with a history of success. Generally, these wagers were immensely knowledgeable about the sport in which they were gambling or had insider information which was not made public. The world of investments is similar. The common people think of smart money as the investment made by individuals having an in-depth understanding of how markets play and have information that is never known to a normal investor. Likewise, the smart money is often perceived as having a lot better chances of finding success at a time when the patterns of trading followed by an institutional investor vary from that of a retail in...