Learn from the nature around us.

Do you know the basic difference between predators and prey?

Prey has no patience, cannot withstand hunger, and is often controlled by emotions. Look at sheep, cows, and all the herbivores/omnivores that we often raise, they will always eat and eat, we even cut down more forests besides for agriculture also to plant their feed.

But look at predators like tigers, snakes, crocodiles, even eagles, they don't eat every day!!! And if they go hunting, they will do it with great patience and focus.

Such conditions also occur in the financial market.

The predators do not enter the market every second as many laypeople think. Transactions every second occur more often between retail traders, brokers as intermediaries and liquidity providers, and bots that have been automatically set to buy or sell at a certain price.

Meanwhile, for big players to enter the market, they need large liquidity (read: opposing positions) which usually cannot be overcome by brokers. Or they make OTC purchase agreements which are usually B2B.

So for example, too many retail traders sell with margin accounts and suddenly the price jumps up, that's where usually the parties affiliated with the big boys come in and take the opposite position (buy) because they can only enter when someone sells with a position that is large enough and equal to the purchasing power they have.

If there is only one selling 1 while they can buy 1000 then they will not buy it, why? Because they want their position to be as profitable as possible if calculated at average cost.

So if they see people selling 100000 and they can only buy 1000 they will buy it no matter what, because they are not the only ones waiting for that much liquidity to appear, remember they are not a single entity. So when they all scramble to buy what happens? Of course the cries of retail traders who sell with margin. Thank you for you money and come again folks! They said..

#MarketRebound