سؤال جميل تم توجيهه لسام و رد عليه ...
ركزوا في الكلام و فكروا فيه كويس ...
Question: I found your description of support, resistance and time to be very interesting and I eagerly look forward to your articles. However, it is my understanding that prices are manipulated by Market Makers and Specialists and often the price does not reflect true supply and demand. Stocks are often purchased by MM to drive prices higher–then the public steps in and prices move even higher. At some point, the MM sells. This can’t be a reflection of supply and demand but only manipulation. Is this right? Your insight would be appreciated.
Answer: Good question. I go over this in class all the time as I spent years on a trading floor watching this very event happen all the time. I handled order flow and if I saw that there was a large amount of supply at a price level and current price was below that, institutions would bid the price up to that supply level, inviting the public in to buy, buy, buy, creating the illusion that price was going to the moon. As soon as price hit that supply level however, the institution often dumped a huge sell order on the market, catching the public on the wrong side of the trade and price would collapse. Welcome to trading J. When you compete at anything, you must understand how the game is played. Those that understand best will get paid from those who understand least. In trading, most people derive their education from books written by people who write books but don’t really trade. As a trader, you will learn to love that. While I am not a big fan of middle men or market makers, I don’t blame them. If you are a market maker, your job is to price things so you make money, not the person on the other side of your trade. The one place a market maker or institution can’t hide is the price chart which is why that is always where our focus is. Instead of looking at candles on a screen as red and green signals, start looking at them for what they represent, they are the footprints and TRUE intentions of buyers and sellers