Smart Money refers to the investment or trading activity of institutional investors, such as large hedge funds, mutual funds, and banks, as opposed to individual retail investors. These institutional investors typically have access to more resources and information, and employ teams of professionals to conduct in-depth research and analysis of potential investments.The idea behind the concept of "smart money" is that these institutional investors are more likely to make informed and profitable investment decisions than individual retail investors, and their trades can be used as a signal of the market's direction. For example, if smart money is buying a particular stock, it may be seen as a sign that the stock is undervalued and has potential for future growth.Smart money can also be used to refer to the actions of insiders, such as company executives, who have access to non-public information about a company. Insider buying or selling can be seen as a signal of the company's future performance.It's important to note that smart money is not always right and their actions can also be used to gauge market sentiment but not necessarily as a reliable indicator of future performance. It is important to conduct your own research and analysis before making any investment decisions, and not to rely solely on smart money as a signal for investment decisions.
