In total honesty, a lot of new traders tend to make the same mistake. Although, once they read this, such mistake will never keep happening again.
"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 provide a clear and concise response. High leveraged, poorly considered transactions will always be devoured by the market, especially those that don't include risk management.
Price increases due to increased demand
Lower prices result from less demand.
Are you aware of why?
A large amount of money will enter the market once many people are willing to use their funds to enter a trade. For instance, the others will invest an average fund of $50, while you will initiate a transaction with $10. Assume that during that team, about one million traders will be joining the market. That amounts to $50 million in a single time frame. As a result, only 50,000 of those traders made money, while the remaining 950,000 had their stop losses struck. Now, $47.5 million will be the total amount of money available for purchase in the market. About $5 million was taken out of the market by the 50,000 traders who pocketed their profits at an average of $100 each. If you subtract the $5 million from the $47.5 million that the 950K traders lost. There will still be $42.5 million in the market that can be utilized to maintain market stability. The next time you believe that the market is deceiving you, remember this. You have to look beyond what is visible to the naked eye. You will gain an understanding of the market economy as a whole in this way.
SECRET INDICATORS YOU NEVER KNEW EXISTED!
I will tell you another indicator again that will blow your mind, something that you've always been seeing, in front of you but you haven't quite noticed. Here's what it really is...
First, let's start with how to locate this?
Check heatmap and verify the tokens with highest and lowest percentage. You can check the 1st-5th tokens with the highest and lowest percentages.
Go to homepage and check tokens that are most talked about in the Binance Square and check your list if the 1st-5th tokens are there.
Identify the total percentage increase/decrease from the initial impulsive wave to the recent impulsive wave.
Have you found it yet? If you have that's great but if you have not, worry not. I will clear it out to you.
The secret indicator is the total percentage gained/lost, may it be a gain/loss of 10%, 20%, 30%, 50%, 80%, etc.
These percentages will assist you in making a well calculated trading decision. As the percentage increases higher than 9%, you can always expect retracements to happen and you can open some short positions, especially when its closest to its initial surge of 80% or more, which most of the time is rare in a bearish market. Similarly, as the percentage decreases higher than 9%, you can always expect retracements to happen and you can open some long positions, especially when its closest to its initial dip of 80% or more, which most of the time is rare in a bullish market.
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.