Trading 101: The No-BS Guide to Financial Markets
📍 Who Are the Players in the Market?
💰 Banks & Institutions – The real power players. Move billions in currency daily.
🦈 Hedge Funds – Trade massive positions based on economic data and speculation.
🏦 Central Banks – Set interest rates that affect entire economies.
📊 Retail Traders (Us) – Small traders (like you and me) trading through brokers.
🚨 Reality Check: Retail traders make up less than 5% of market volume. We are not moving the price—big money is.
📍 How Price Moves in the Market
Supply & Demand: When there are more buyers than sellers, price goes up. When there are more sellers than buyers, price goes down.
Market Makers: These are the middlemen who provide liquidity but also manipulate price (yes, they play dirty).
News & Events: Major economic events, central bank decisions, and geopolitical news cause massive price swings.
📍 Market Manipulation
Stop Hunting: Brokers and institutions trigger retail traders’ stop losses to take their money.
Fake Breakouts: Price looks like it’s breaking out, then reverses (designed to trap dumb traders).
Liquidity Grabs: Big players push price into retail stop-loss zones, then move in the opposite direction.
✅ How to Avoid Getting Trapped?
Trade with the trend, not against it.
Watch for fake moves before entering.
Understand institutional trading strategies.
🔑 Key Takeaway:
You are trading in a game controlled by the biggest financial institutions in the world. The only way to survive is to understand how they operate and trade accordingly.