hey everybody Welcome to the training video on stock grid dot IO stock grid IO is the resource that we use to Source trades within the dark pool section of the market in today's video I'm going to go over what dark pools are and how you can find more information on you know as far as understanding what dark pools do and also shedding light on why this is a huge part of our methodology when it comes to trading stocks and options in the markets to put it simply stock grid. io gives us access to information about off exchange trading activity in the dark pools so off exchange trading is a great indicator because it enables you to track the buying and the selling of Stocks by hedge funds billionaires and other major players in real time this is not like the political trading where they have 45 days to disclose their trades this is within 24 hours you will be able to see all of these billionaires and hedge funds all of their trades and it is a really really good indicator now before we jump into stockgrid. io and I go over all the strategies that you guys can look for to Source a trade using Dart pools I do want to read the introduction to dark pools just the first paragraph or two so you guys can have a more clear understanding of what dark pools are and you can find this article for yourself to read it all the way through in its entirety by going to the dark pool section and going down to learn more about the following subjects and you can find introduction of Dart pools right there okay all right so now we are here you know how to find this page if you need to get to it I would highly recommend that every single article that you hear about in any of these videos read them read them twice read them three times look up any words that you don't understand any of the stock terminology there is so much stock terminology that you will not know research it under stand it study it take down notes do whatever it takes to understand this before you start actually trying to Source your own trades or before you just try to jump into the markets so let's go ahead and begin introduction to dark pools dark pools what are they so dark pools are exclusive marketplaces for trading Securities that are not available to retail investors these exchanges are also referred to as dark pools of liquidity a reference to their total lack of transparency dark pools were created primarily to help institutional investors who wanted to trade in blocks but did not want to disrupt the markets with their large orders and receive unfavorable prices so let me break this down for you this is probably something that you just had no idea what I was talking about here so essentially if a billionaire or a hedge fund wants to drop like something crazy like 50 billion dollars into a stock they can't do that let's just say this stock has a market capitalization of a hundred billion dollars if they drop 50 billion dollars into that stock it would virtually increase that stock price by 50 percent that's not even possible for that to happen because it's not possible for them to buy all of those shares at the exact same price let's say the stock is trading at ten dollars a share okay if the market capitalization is a hundred billion dollars let's just say they put 10 billion dollars in that it goes to a hundred billion to 110 billion that stock is moving up 10 which means the stock price of ten dollars just moved to eleven dollars okay you see what I'm saying they can't buy all these shares at the exact same price they will have to buy in chunks which is why dark pools were created so they can buy all of their shares at the exact same price makes sense okay uh look it up if you don't understand and just you know read this full article although dark pools are sometimes viewed negatively they serve a useful Purpose By enabling large trades to take place without affecting the broader Market they are however exposed by their owners potential conflicts of interest and some high frequency Traders predatory trading tactics because of their lack of transparency so what it's talking about here is and this is what's really interesting about dark pools is that they have information nobody else has and the reason why that happens is because well first of all dart pools are 100 Anonymous we don't know who's trading in the dark pools but we know what they are trading which is why this is such a good indicator because now all these hedge funds and all these billionaires they have an opportunity to trade unethically in the stock market without the SEC knowing that it's them okay it's it's insane how this is even legal guys absolutely insane and what I think you guys will start to understand throughout all of the strategies that we do to find and Source our trades is that we are using indicators that are totally fraudulent totally illegal they should be illegal just like with this the you know stock trading from the politicians all the way to the dark pools it is all so unethical and that is our whole strategy is disrupting the marketplace and you know exposing these people they need to be exposed and we're going to profit off of all this so let's just go ahead and talk about the key takeaways here and this is the last part I'm going to do of the introduction because I want to get into the actual you know sourcing of Trades within the dark pool so you understand how to do that so the key takeaways here are dark pools are exclusive marketplaces for trading Securities that are not available to retail investors dark pools were developed to make block trading possible for institutional investors who did not want to disrupt markets with their large orders and receive unfavorable trade prices despite being illegal and subject to SEC regulation they could be viewed negatively like I just explained and dart pool transactions have no impact on the larger market like I explained with the share block trading that doesn't exist anymore they can just buy all the shares with one button one click and they get the shares at one certain price that they want and broker-dealer owned dark pools agency broker or exchange owned dark pools in electronic market makers dark pools those are the three different types of Dart pools okay let's get into stockgrid.
io and hopefully just through this little section here helped you understand what dark pools are but I'm telling you you need to go through and read all of this look it up take notes telling you it'll change your life if you understand what's going on fully all right so when you are on the stock grid dot IO front page I'm going to need you to click the dart pool indicator so go over to your left side go down and go to dark pools right here go ahead and click that okay now the first thing I want to let you know about is up here is where you can actually search up your tickers so let's just say let's look up GameStop for instance meme stock right there okay uh so we just looked up GameStop now there's gonna be a lot of charts there's gonna be so much stuff that just it doesn't even make sense to you don't even worry about it okay scroll to the bottom here oh I went too far okay scroll right here to price for a short volume percentage okay this is the only thing that you're gonna have to look at here um me and Ben we don't like to get super nitty and gritty we don't like to look at you know insane amounts of indicators and you know all of this garbage we like to have one clear-cut thing to look at and with each strategy so with dart pools this is literally the only thing we look at is the price versus short sale volume percentage and I will explain what this is I'm sure a lot of you just have no idea what I'm talking about but you will know what I'm talking about by the end of this video all right so the first thing that you have probably noticed is there are two different lines there is a pink line and there is a purple line okay this might give you some chills it gave me chills the first time I looked at it but this pink line is billionaires and hedge funds this is exactly what they're up to right here you can see all of it it's crazy and it's all Anonymous too and let me explain um but before I do that I want to let you know that this purple line is the actual stock price as you can see um if you look at that little black box on the screen you can see it says price and short sale volume percentage you can see the purple Little Dot there you can see it's moving from 23 to 22 to 23 okay and you can see the short sale volume which is the pink line with the pink dot short sale volume percentage it's at 73 right now it just went to 58 59 63. okay so you're starting to see what I'm talking about here this is distinguishing between what these two lines are and what they do okay now one thing that is going to be vital to your success at understanding and reading these charts is what are the strategies implemented that that we can take advantage of here okay have you ever heard of a short squeeze I'm sure you've heard of a short squeeze with GameStop you've heard that all over the place there are short squeezes gamma squeezes long squeezes bear raids so many things that you can be looking at here that are getting set up so something just right now that I want to point out here you can see that there's the short sale volume was 76 percent okay and then it drops to 58 and then look at this the stock price shoots straight up okay what what is this indicating here I will tell you what this is indicating it means that 76 percent of the shares traded within the dark pools were actually shorted which means 76 percent of the the dark pool money that was invested they bet on the stock going down okay 76 that's a lot then out of nowhere within just two days it drops to 58 that's a large decline okay what is that indicating to everybody here okay oh oh so the billionaires and the hedge fund managers they might they might have sold those shorts because they think there might be a huge increase in stock price okay we can play off of that and then look at what happened to the stock price boom it goes up six seven bucks a share okay see now you're starting to understand what is going on in the dark pools and the I'm gonna tell you this right now the the the thing you should be looking at is large increases or decreases in the short sale volume okay so when it goes up just like here it went from 52 to 84. okay that is that means a lot more people that are trading within the dark pools hedge fund managers billionaires they believe the stock is going down sun down okay and then when it drops dramatically okay the thing it's going up so you see what I'm saying here it's it's really not that hard you don't have to memorize what a short squeeze is what a gamma squeeze is what a long squeeze is you just have to understand that when this line goes up they think the stock is going down when this line goes down they think the stock is going up and that is all you have to know you don't have to do a bunch of research it's this simple okay now there is one thing that I do want to talk about and it is a short squeeze and I want to explain to you why this matters so much within the dark pools because these institutional investors and Traders they can get themselves in a really tough situation and I'm going to actually find a stock where this happened and I will pull it up right now okay so I just pulled up Intel stock and this one's not a super clear uh indicator but I just want to show you here so as you can see here stock price was kind of trading flat then it traded very low to 24 a share you can see the short sale volume started going down a lot it peaked at 65 dropped all the way to 19.
