Market dynamics
Before an aspiring trader can learn to earn money in the game of trading, He or she must first obtain a proper understanding of the participants, market structure, risk of the instruments he is dealing in. The ability to understand why the market is behaving the way it is allows one to accurately anticipate market behavior . Participants Role of market is to facilitate the trade between buyers and sellers. However, Buyers and sellers are not the same. The ability to distinguish between these categories will allow you to anticipate upcoming price movement and behavior. Responsive buyer - He enters the market when price is below value. In essence when one waits for the price of the iPhone to drop before the release of its new version he or she is a responsive buyer. Responsive seller- He waits until price is above value before entering the market. Responsive buying and selling typically drive the price back toward the mean. Initiative buyer- An initiative buyer enters the marke