Why do 99.9% of traders lose money? It's because they don't know who their adversaries are. When you are trading contracts, do you know where your opponent is? Most of the time, your counterpart is the market maker. They're on the opposite side of your orders. 💰
🎯Who are the market makers? How powerful are they? Market makers operate in teams and are well-capitalized. Many projects seek specialized teams to make markets, essentially to assist project parties in selling their issued tokens to you.
🏦Recently, the U.S. Securities and Exchange Commission (SEC) sued Binance. Do you know why? A market maker named Sigma Chain was key. Their actual controller is the controller of a major exchange. Trading on the exchange is like gambling against the exchange. 🔍
🤔So, how do we make money? No, I'm not saying that we can't make money from these circumstances. Rather, we need to understand and respect the market, be well prepared, have clear strategies, and avoid dreaming of getting rich overnight.
1️⃣Stability and drawdown control are crucial. Ask yourself, what is your goal? To double or triple your capital, or to achieve social mobility? A rational analysis, progressing step by step, avoiding substantial drawdowns, is essential for steady profits.
2️⃣Technical or fundamental? Traders should focus more on the technical side. Our holding period generally ranges from 4 hours to 7 days, and fluctuations in this time frame are primarily driven by the contest between market makers and intraday traders.
3️⃣Predicting the future or thinking in probabilities? We can't predict the future, but we can use probabilistic thinking to help us make better decisions.
I hope these insights can assist you. Trading is a profession; it requires specialized knowledge, clear strategies, patience, and determination. Always revere the market, remain humble and cautious, but also be prepared to embrace challenges boldly.
Even with large market makers and other complex factors, various news and dynamics in the market, as long as we are sufficiently prepared and have clear strategies, we may find our place in the market and gain profits. 💰
Lastly, trading is not a sprint; it's a marathon. We need to be patient, we need to persist until the end. Only in this way can we achieve success in this game. 🏃♂️🏁
Best of luck in your trading endeavors, and keep going! 💪🚀