What is Market Capitulation??

Market capitulation refers to the threshold reached after a severe fall in the market, when large numbers of investors can no longer tolerate the financial losses incurred.

These investors then capitulate (give up) and sell in panic, or find that their pre-set sell stops have been triggered, thereby automatically liquidating their holdings in a given stock. This may trigger a further decline in the stock's price, if not already anticipated by the market. Margin calls, mutual fund and hedge fund redemptions significantly contribute to capitulations. The contrarians consider a capitulation a sign of a possible bottom in prices. This is because almost everyone who wanted (or was forced) to sell stock has already done so, leaving the buyers in the market, and they are expected to drive the prices up. The peak in volume may precede an actual bottom.

Broadstreetlagos.com(BSL) has data that helps you develop the skill needed to determine appropriate entry and exit points during capitulation. You are in the right place for this market.

A premium profile on www.broadstreetlagos.com gives you access to the data you need. Over the next few weeks we will discuss more phrases.