EVER WONDER WHY THE CRYPTO MARKET NEVER RUNS OUT OF FUNDS? (TRADING LIFE CHANGING ARTICLE!)
"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.
YOU NEVER KNOW THIS TOKEN'S VALUE UNTIL IT CONTINUES ITS SURGE!
We have been doing limit entries on a specific token and taking profit with every impulsive movement it does after hitting these limit entries.
The reason for these limit entries is the fact that there are possibilities of divergence being formed at the high demand zone.
Once the demands are met at these key levels, we will then see more divergences being formed.
The rule that we're following for establishing of new supports on top of resistances are also followed. In this sense, more higher lows have already been constructed for another possible higher high of #TRU. Hence, it'd be best to enter this token at these zones with some scalps/day trades and possibly another swing high.
Stay wise, trade cautiously.
#GAINERSPACK #EARNINGDAILY #TRADEANDEDUCATE
