How We Will Win If All Use The Same Style Trade ?!! - page 2
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"Trend makers" and "trend followers", are the words you are looking for ?
Well. I guess that is what is needed for the market to move. Traders start buying, that pushes prices higher. Those who smell approaching the peak start selling and take profit, but those who are late to close thier trades will be the losers... So when everyone start buying or selling is the best time to put on a trade.
Just like if I am a large fund, and buy millions of lots, the first lots I get at good price, but then before I issue the rest the price goes up, and I get the rest of the lots in an upward price, making the average price too bad.
So now, remove the fund, and instead put the 5.5 percent of traders, together we are a pretty large fund.
So, each individual trader should find himself in those trades of the fund, and should be in the first of them, and when the fund wants to exit, it's best exits are the first, so as well, we as traders should be the first to exit.
This is regarding the time before the trend happens, and explains why you need to be at the beginning of a trend, and exit at the beginning of the reverse.
And there's one more observation - regarding what happens when most crowd already is in a position. When the sum of money that is already in a position - for instance in a EURUSD buy position, and long EURNZd and so on, so the EUR is over bought (meaning that everybody is ALREADY inside a EUR long position).
At the beginning, lets assume everybody is out. So, this is even. But, as many see the same thing, they start to buy. The buy position of that currency is getting heavy more and more (everybody bought EUR) - so now, the preassure of selling is great, because each buyer looks for a sell opportunity (TP or SL).
This explains why when all (or most) crowd is already in a position (not going to get in, but already got in) this is the time to sell (because the buying preassure decreased and the selling preasure is at it's peak).
And this exactly is the sentiment indicator which some brokers have. It indicates on each symbol, what's the position of most traders. You should enter the opposite of this indicator, for instance if the indicator says 80 percent are long EUR, it means sell the EUR.
Well. I guess that is what is needed for the market to move. Traders start buying, that pushes prices higher. Those who smell approaching the peak start selling and take profit, but those who are late to close thier trades will be the losers... So when everyone start buying or selling is the best time to put on a trade.
What I understood too at first :)
I Read all your comments
but until now i dont understand
why we share our strategy in trader and share our Expert to by its
If all people do that and all like buy , who will take from us for sell it and profits ?
bank or company invest trader by millions , Are these millions buy by it or sell by it , or a divide and buy by some and sell by some :)