What moves the markets? Or rather what drives humans and the computers that operate there to do so? Simple, hope to earn! The hope to making money drive to open the positions and see what happens, what makes them close? The Fear, fear of losing, losing what? The accumulated profit if the market moves favorably or the fear of losing the capital if the market moves unfavorably. Which, however, between hope and fear is the strongest feeling? It is fear, a “life-saving” feeling. What did our ancestors do when they saw a wild animal? Thanks to fear they escaped and were saved.
It may seem simplistic but I assure you that it is not. This is the root causes that drive human beings to speculate on the markets. Whether they are dealers, market makers, hedge fund traders or retail traders, everyone acts for these reasons. In an opaque environment, not very transparent, where information is in the hands of a few, can we define this as one of the absolute truths of the trading sector? Can we then construct other theories around us? Of course yes!
TRADING SM.ART 