How market makers leverage retail FOMO to harvest liquidity.

[Cryptomultiplier]

‎From my research I learnt how big institutions like market markers, smart money or hedge funds, at resistance and loss aversion and at support also, use FOMO to solve their biggest problem in trading and harvest liquidity, without ruining their own price because they understand how support and resistance work.

‎ They know that support and resistance are not lines, but are zones where humans allow their emotions to make decisions in the market that in turn creates huge clusters of orders, so they manipulate the price towards these zones on purpose so that FOMO causes emotional trades that they benefit from to fill their multi million dollar orders, thus harvesting liquidity.
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‎They prey or retail traders with uncontrolled emotional reaction to FOMO  to execute a large trade that would have cost them much.
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‎What do you think?
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[Hamza2424]

‎From my research I learnt how big institutions like market markers, smart money or hedge funds, at resistance and loss aversion and at support also, use FOMO to solve their biggest problem in trading and harvest liquidity, without ruining their own price because they understand how support and resistance work.

‎ They know that support and resistance are not lines, but are zones where humans allow their emotions to make decisions in the market that in turn creates huge clusters of orders, so they manipulate the price towards these zones on purpose so that FOMO causes emotional trades that they benefit from to fill their multi million dollar orders, thus harvesting liquidity.
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‎They prey or retail traders with uncontrolled emotional reaction to FOMO  to execute a large trade that would have cost them much.
‎
‎What do you think?

So it was your research, hmmm. I wonder where were you before haha. Sorry, no offense bro, but you got to see the big picture here, which is obviously what you mentioned, and it was obvious already, but we all can add a few more points to this.

Because smart money is probably not smart money, but these exchanges and their order-booking features, there are ways that I don't know about, but I do know they exist, that are helping the brokers behind the big crypto industry manage this.

But still, you, smart money, does not make their moves for small fishes, at least that's what I think, because you analyze the market and $75k seems like a support and $80k seems like resistance, and when the price will go near, the market becomes risky and volatile, right? That's not because of smart money, but also because of retail investors too.

The real lesson here for us is to learn when to sell and when to buy. There is no grand liquidity harvest scheme here that you have to fight against, but if you believe there is, you still have to manage your trades according to your style. Someone said in a group, buy this. You don't buy at their preferred buying range, you buy at their stop loss.

[BitMaxz]

This is pure SMC on how this exactly works. Smart money, liquidity sweeps, or stop hunts. Those are under the SMC concept; that is actually what they are doing. They even use fundamentals like news to spread fear and FUDs that makes investors fall into FOMO, or they manipulate hunting stop-loss or liquidity sweep.

That's not because of smart money, but also because of retail investors too.

Are you talking about spikes and manipulations? How can a small or retail trader deal with spikes and manipulations?
If you are a trader, you should only follow what bias is because we are not whales and big institutions. If you see a possible manipulation as a small or retail trader, you wait for confirmation before entering the market. In SMC strategy they do wait for those manipulation liquidity sweeps and stop-hunts before they enter because as a trader we shouldn't be against them because we don't have much power to fight them.

[slaman29]

@Hamza2424 says something I think a lot about but actually probably never said so myself.

There is no big play at work, there is nothing for you to defeat, there is no big evil manipulation scheme. If you actually think there is, then you lost the battle against yourself.

If you're really serious about trading (even though I don't recommend it) then you simply work with your knowledge, trust your TA, and do your own thing. If there is a promo or a situation that fits your TA logic, go for it, don't start thinking oh this is a trap. Shouldn't your trade logic work no matter what?

[Big Dirams]

@Hamza2424 says something I think a lot about but actually probably never said so myself.

There is no big play at work, there is nothing for you to defeat, there is no big evil manipulation scheme. If you actually think there is, then you lost the battle against yourself.

If you're really serious about trading (even though I don't recommend it) then you simply work with your knowledge, trust your TA, and do your own thing. If there is a promo or a situation that fits your TA logic, go for it, don't start thinking oh this is a trap. Shouldn't your trade logic work no matter what?

When a person want to take trading seriously then they will definitely be ready to give it all it takes. New traders make the mistakes of doubting their selfs and always having negative thought about their technical analysis and strategies and they fail to put into practice  and in that way they won’t ever find out if their technical analysis and strategy are reliable and effective to them. As a trader sometimes we begin to doubt ourselves especially the new traders but we need to believe in ourselves first and have confidence in ourselves before anyone can believe us. Let be a motivator to ourselves so we can see how far we can really go in life, the fear and risk taking shouldn’t hold us down and pin us to the wall.

[Dr.Bitcoin_Strange]

That's why setting a tight stop loss is always at the disadvantage of the retail trader, some will use a very high leverage and still apply a very tight stop lose which most of the time, price will go and take out all orders in those zones before moving to the actual direction of the smart money traders.

One of the old time trader ones said that if you want to take a trade, always set your entry in the area where you would have set your stop lose, although that's not my trading style but I have tried that a few times and it worked while in the rest of the time I tried it, I missed my entry because price never got there.  For traders who use stop loss (like myself), it's very important to know how to correctly use that features, when to use it and when not to. As for myself, I don't apply stop lose all the time, I could have an imaginary stop lose in my head but there's an area where I don't expect price to move past and most of the time, price won't get there but if I had use SL before that area, I would have gotten liquidated.  Lastly, you can not completely know what the market will do always, so, it's best to always apply good risk management to protect your asset.

[Moreno233]

‎ They know that support and resistance are not lines, but are zones where humans allow their emotions to make decisions in the market that in turn creates huge clusters of orders, so they manipulate the price towards these zones on purpose so that FOMO causes emotional trades that they benefit from to fill their multi million dollar orders, thus harvesting liquidity.
‎
‎They prey or retail traders with uncontrolled emotional reaction to FOMO  to execute a large trade that would have cost them much.
‎
‎What do you think?

There was a trading strategy I learnt sometime ago that explained this in details. That method is called Smart Money Technique (SMT) and details how the big institution (Smart Money) manipulate the market to trick traders to take position thereafter they will hit their stops before making their real move. In that strategy,  support and resistance are mostly regarded as liquidity pool and those are the places where the damage is done to the retail traders.

[Hyphen(-)]

‎They prey or retail traders with uncontrolled emotional reaction to FOMO  to execute a large trade that would have cost them much.
‎
‎What do you think?

That’s business and exactly what trading is all about. It’s a risky game because no matter their manipulations, some traders will make money from the their trades, so it’s left for the traders to know the directions to face that will be profitable for you, if you can’t gamble take the risk of high leverage, then do it, it can favor you and might not. The best advice here is to make sure you control your emotions, and rely on your analysis, don’t allow FOMO drives you.

[Cryptomultiplier]

‎ They know that support and resistance are not lines, but are zones where humans allow their emotions to make decisions in the market that in turn creates huge clusters of orders, so they manipulate the price towards these zones on purpose so that FOMO causes emotional trades that they benefit from to fill their multi million dollar orders, thus harvesting liquidity.
‎
‎They prey or retail traders with uncontrolled emotional reaction to FOMO  to execute a large trade that would have cost them much.
‎
‎What do you think?

There was a trading strategy I learnt sometime ago that explained this in details. That method is called Smart Money Technique (SMT) and details how the big institution (Smart Money) manipulate the market to trick traders to take position thereafter they will hit their stops before making their real move. In that strategy,  support and resistance are mostly regarded as liquidity pool and those are the places where the damage is done to the retail traders.

Since retail traders suffer the most from emotional pitfall of FOMO due to lack of patience or ability to not see TA as some kind of sacred bounce points but as target points for orders accumulation, it is important for them to learn and understand how to treat key levels in the market as order pools, understand that patience is vital when waiting for liquidity sweeps, learn to confirm structural shifts in the market, learn to use stop loss that is wider in bracket, learn to check divergence in SMT and avoid chasing breakouts at all cost.

[Moreno233]

There was a trading strategy I learnt sometime ago that explained this in details. That method is called Smart Money Technique (SMT) and details how the big institution (Smart Money) manipulate the market to trick traders to take position thereafter they will hit their stops before making their real move. In that strategy,  support and resistance are mostly regarded as liquidity pool and those are the places where the damage is done to the retail traders.

Since retail traders suffer the most from emotional pitfall of FOMO due to lack of patience or ability to not see TA as some kind of sacred bounce points but as target points for orders accumulation, it is important for them to learn and understand how to treat key levels in the market as order pools, understand that patience is vital when waiting for liquidity sweeps, learn to confirm structural shifts in the market, learn to use stop loss that is wider in bracket, learn to check divergence in SMT and avoid chasing breakouts at all cost.

Using wider stop loss is like exposing yourself more to the risk of market manipulation and that is not recommended. Instead of using wide stop loss, a trader will do better when he is able to spot and wait for the manipulation to finish so he can trade in line with the marlet makers. This makes them escape the manipulation and also be able to use smaller stop losses and significantly reduce the waiting time before the market will be profits because as soon as the manipulation is done, market moves aggressively away from that zone.

[AVE5]

They know that support and resistance are not lines, but are zones where humans allow their emotions to make decisions in the market that in turn creates huge clusters of orders, so they manipulate the price towards these zones on purpose so that FOMO causes emotional trades that they benefit from to fill their multi million dollar orders, thus harvesting liquidity.
‎
‎They prey or retail traders with uncontrolled emotional reaction to FOMO  to execute a large trade that would have cost them much.
‎
‎What do you think?

I doubt if this experience of the bitcoin whalers does still have such earlier nfluence to manipulate the market through negative or positive potential impacts so that they could drive investor's psychologically to fall victims of taking unwarranted actions out opts of Fomo.
Of course we read about the huge amount of bitcoin sold by Strategy and everyone was almost becoming aware that when price fall's over  high sales could only be a temporary moment. So there's no need to panic but hold firm.
Time is also coming when we'll be seeing every moment of actions in the market as normal that those liquidating the market to influence others don't have the great influence anymore.

[nelson4lov]

I recently got to learn about why the concept of liquidity is very important when it comes to trading. The liquidity concepts that resonated with me most were Equal Lows + Equal highs and Liquidity sweeps. After knowing these concepts, I am more careful when placing orders because sometimes you want to ensure that you observe what is happening at a zone/POI that you are interested at to see how price reacts at that zone. The reality is that institutional traders needs a ton of liquidity to get in and out of market and it just happens that support/resistance zones are where those liquidity can be found.

[slaman29]

When a person want to take trading seriously then they will definitely be ready to give it all it takes. New traders make the mistakes of doubting their selfs and always having negative thought about their technical analysis and strategies and they fail to put into practice  and in that way they won’t ever find out if their technical analysis and strategy are reliable and effective to them. As a trader sometimes we begin to doubt ourselves especially the new traders but we need to believe in ourselves first and have confidence in ourselves before anyone can believe us. Let be a motivator to ourselves so we can see how far we can really go in life, the fear and risk taking shouldn’t hold us down and pin us to the wall.

I don't think we're talking about the same thing here, buddy. I was talking in reference to the guy's post (super valid) about second guessing your TA because you think everyone on exchange side is manipulating you.

This isn't about self-doubt, which is anyway what affects you when things aren't going well.

It's about not trying to frame trading as you vs the machine.