First of all, I will keep you in suspense. The trading group is divided into two categories. This is a subjective ideology. They are divided into strong traders and weak traders. This way, everyone will find it easier to understand our series of articles. Okay, let’s not waste any more time and officially begin.
Strong groups in the market and their performance:
Strong groups are usually people who do not allow themselves to fall into a disadvantageous trading position in the transaction. For example, they will always stand on the right side of the market.
The strong group has great faith in their trading plans. They will not be shaken by local drastic fluctuations. For example, once the conditions for accumulation are met, they will not be affected by the subsequent market shocks to change their judgment on accumulation. Or they will not get involved in the market at or near the top. The reason why the strong group is strong is that they trade in the right direction of the market.
These people usually have large funds and study the market with professional ability. Despite their ability, strong groups still often have losses, but these losses are extremely small. This is because they will quickly deal with losing trades. A series of small losses are regarded as trading costs. These people may even have more losing trades than winning trades, but in general, the profits from winning trades far exceed the sum of all losing trades.
Reasons for the bear market:
When the market is crazy, the strong groups transfer their chips to the weak groups, for example, when the volume does not rise!
The continuous rise in prices has caused many people to worry about not being able to get on the bus in time.
Finally, the market entered a crazy stage of skyrocketing, and vulnerable groups were attracted by the appearances and jumped on board for fear of missing out again.
At this time, we have to ask ourselves, will those powerful groups take advantage of the public's frenzy and start selling? If the market is so good, why are they selling? When we analyze the market, we should learn to look at some special market behaviors from the perspective of the main force or smart money.
When a large number of chips are substantially transferred from the hands of the strong group to the hands of the weak group, and the strong group is profitable, the market loses its upward momentum and a bear market will appear.
Please keep communicating with us. We will continue to produce more high-quality articles. Please remember to spread them to us. 🤗