The Smart Money concept means using large capital information to make decisions about the purchase and sale of assets. Large players in the market, such as Central Banks, market makers and exchanges, use their large capital and unique algorithms to set prices for certain levels, achieving their goals and objectives. The analytical work of professional traders is not to use complex indicators, but to recognize traces of smart money in the market using Price Action and Smart Money analysis.
FOCUSING IN MISDING
First of all, you need to monitor past events on the market, as large participants leave open positions that must be closed, and they must go a certain way. To continue the price movement, banks and foundations perform a certain algorithm of actions that guarantees their success and profit. WHICH SMOKE CAPITAL LIKES?
Smart money can eliminate not only retail traders, but also other banks and funds that are less experienced. Some large companies can also act stupidly, controlling large sums of money and earning profit from the commissions of their customers and investors.
If everyone starts using the Smart Money concept, then it will not stop working?Even if all market participants use this approach, manipulation will continue and prices will be tested to close open positions. Smart capital cannot do without it. The concept of smart money is an approach that is used for profitable trading. While money is circulating on the market, the Smart Money concept will work
Smart Money is one of the strategies that relies on following major players in the market, such as banks and financial funds. These participants have significant capital and use unique algorithms to achieve their goals and objectives.
One of the benefits of Smart Money is that it allows traders to use information that is not available to the general public. Thus, traders can benefit by following major players in the market who know more than ordinary traders.
In addition, Smart Money Strategy helps to avoid mistakes that other traders often make, such as emotional reactions in the market or too frequent trading. This strategy also allows traders to improve their market position and earn more money.
In general, Smart Money provides traders with the opportunity to use unique information and avoid typical errors, which can improve their market results. However, as with any other strategy, success depends on many factors, including market knowledge, trading skills, and proper risk management.
