"HOW DOES THE MARKET STAY ON A CERTAIN LEVEL? ISN'T THE IDEA OF TAKING PROFIT IS TAKING FUNDS IN THE MARKET? WHY DOES IT NEVER RUN OUT?"
Let's answer it simply and straightforwardly. The market will always devour those with high leverages that aren't properly calculated trades (most especially those with no regards to their risk management).
Greater demand = higher price
Lesser demand = lower price
Do you know why?
Once a lot of people are willing to use their funds to enter a trade, a lot of money will be entering the market as well. For example, you will enter a trade with $10 and the others will enter an average fund of $50. Let's say, there will be around 1, 000, 000 traders entering the market during that team. So that's $50M in a single period of time. Fast forward to the results, only 50, 000 of those traders took profit and the other 950, 000 have their stop losses hit. Now, the total funds that's up for grab in the market will be $47.5M. The 50, 000 traders who took their profit at around $100 average profit for each have took around $5M from the market. If you deduct the $5M from the $47.5M that was lost by the 950K traders. The market will still have $42.5M left which can be used to keep the market floating. So the next time you think the market is just fooling you. You must seek more than what the eyes can see. In this way, you will understand the overall market economy.
These posts are for educational purposes. To guide the people who might still be struggling within the crypto market, those who are new to the environment and volatility and everyone else who needs it.
Stay wise, trade cautiously.
