Stock falls on profit taking?

[deaddog]

Well right now you’re just guessing that an increase in volume is an institution. How good are your guesses? Probably about 50%. Maybe less. ‍

Who else would it be?
If I can be right 50% of the time I'll do really well. I make money with 40%

 

[MoneyMagnet]

Stocks fall because those who choose to sell at that price are more motivated or have more money than those who choose to buy at that price. We can't know more than that - anything else is just stories we tell ourselves to foster understanding.

 

[longandshort]

Who else would it be?

Any number of things — mainly random aggregations of orders. Institutions by and large trade dark or through algos that track a % of adv. Anyone telling you that a spike in volume is institutional buying is lying to you. I’m not saying that there aren’t ways to track institutional buying, but those are beyond a simple price and volume chart.

And you’d still lose money at 50% because you have to pay the bid/ask spread. Simple maths.

Anyone who claims they can make money on a 40% edge merely does not understand their claim lol.

 

[Raheel Shaikh]

What do you mean it's a name for a course?

I'm convinced that smart money exists. Someone is profiting from the way the market moves. Who do you think is creating supply and demand?

You have to realize that the stock market is not there for you to make money. It's there for the people who run the market to make money.

Not unlike any other market, be it cars or food or clothing, you might be able to find an opportunity to take advantage of the way things are run, but the market was never intended to make money for the customer.

In Forex there is big hype with courses that say "Smart Money Concept"
its same as supply and demand just a fancy name for it, where ppl make like 700RR a week
its nothing but the mentors making money form the course and 80% aren't even real traders
just slapping the risk reward tool on the charts and showing 100% gain in a day and trapping the beginner traders . its a shame

the Big whales/hedge funds of course manipulates the market
that's what pure supply and demand is

 

[deaddog]

And you’d still lose money at 50% because you have to pay the bid/ask spread. Simple maths.

Anyone who claims they can make money on a 40% edge merely does not understand their claim lol.

I question whether a 40% win rate and a 40% edge are the same thing. I tend to make more money with my winning trades than I lose when I get stopped out. I'm not sure if you can define that as an edge.

 

[GuerrillaTrading]

I always think of it in terms of pressure. On the sell side you have those closing their long positions for whatever reason. You don't know at what price the got in, it could be profit taking or covering losses, and then you have new shorts entering the market.