#Green_lamp The big player is not a villain, or about our stop losses đ
You've probably heard that big players, or market makers, manipulate the market, knocking everyone out of the park. But why would they do this? đ€
Well, let's find out. 80% of the market is big capital: hedge funds, institutional investors, large companies. They move the market and stop it.
Retail traders like us cannot create trends and push prices. Even if we all group together, our volume will not be enough to move the price in the long term. And in general, this is simply impossible.
The big player is not the villain!
Let's dispel the myth: a big player is not some evil puppet master who deliberately drives the price to your stop losses in order to take your money. He simply has no other option to load the position. If a large capital buys with a market order, it will be spread across the order book, and its average entry will be unprofitable (it will lose part of the position due to slippage). If he buys with a limit order, his position will be partially filled, and the price will move away from his limit orders. It's simple supply and demand logic.
Now let's think logically
If it is not profitable for a large player to enter with a market order, and a limit order will not load him completely, how can he then load his position? The answer is simple: create a flat where he can load profitably and at approximately the same price, or take the stop orders of retail traders without all the problems that I listed earlier.
Underwater rocks
Of course, the big player has other methods for loading a position, which I will talk about next time if you like this post. The main thing I wanted to make clear is that the big player does not have the goal of taking your money and causing panic. All this is done because otherwise it is very difficult for him to load a lot of money into the market.
