by me
Let’s talk about something that most traders don’t fully understand: who’s on the other side of your trade? One of the biggest reasons most people lose money in trading is because they don’t know who they’re really competing against. When you’re trading, your counterpart isn’t some random person—it’s usually a market maker.
Who Are Market Makers and Why Do They Matter?
Market makers are teams of highly funded professionals who ensure liquidity in the market. They’re often hired by projects to help sell tokens to the public. Essentially, they’re experts working against your trades. They have deep pockets, a well-coordinated team, and a plan.
For example, recently the SEC sued Binance, and a market maker named Sigma Chain was right in the middle of it. This market maker is controlled by the same people who control a major exchange. So, when you’re trading on an exchange, it’s not much different from gambling—you’re playing against a well-funded and well-organized opponent.
How Do You Win in This Game?
Now, I’m not saying you can’t make money, but you need to know how the game works. You have to be prepared and avoid unrealistic expectations of getting rich overnight. Here are a few key strategies to keep in mind:
1. Control Risk and Focus on Stability
Before jumping in, ask yourself—what’s your real goal? Is it to double your money quickly, or are you aiming for consistent long-term growth? The key to success is to approach trading with a realistic mindset, avoid massive losses, and aim for steady profits over time. It’s a marathon, not a sprint.
2. Focus on Technicals, Not Just Fundamentals
In short-term trading, technical analysis should be your main focus. Why? Because market movements over a few hours or days are driven by the actions of market makers and other intraday traders, not necessarily by long-term fundamentals. Understanding price action and using technical indicators can help you stay ahead.
3. Think in Probabilities, Not Predictions
Here’s the truth: no one can predict the future, no matter how good they are. What you can do is think in probabilities. Instead of trying to guess what will happen next, focus on what’s most likely to happen and plan for different scenarios. This mindset shift will help you make better decisions and manage your risk effectively.
Final Thoughts
Trading isn’t something you can just jump into without a plan. It’s a profession that requires knowledge, strategy, patience, and discipline. You need to respect the market—stay humble and be cautious—but also be ready to face challenges head-on. Even with big players like market makers influencing the market, you can still find your edge and make profits if you have a clear plan and stay prepared.
Remember, trading is a long game. It’s about persistence and smart decision-making over time. Stick with it, stay focused, and you’ll give yourself the best chance of success.
Good luck with your trading! Stay disciplined and keep pushing forward.