What’s Smart money all about?
Hard to pin down in forex.
In the stock market, which has a daily open and close, some traders say that the money that is moved in or out in the last hour is smarter than the money moved in or out in the first hour. This is a manifestation of the rule of thumb that amateurs buy at the open and professionals buy at the close.
Its hard to see a parallel for this in forex as the only people with enough money to move exchange rates are the international banks and they trade 24 hours a day trough the working week.
Definitely don’t accept the trader sentiment figures from your broker - most private retail traders are losing money so what the majority of them are doing is wrong. Maybe buying when they are selling and vice versa might be worth exploring.
Mostly the expression “smart money” is used by salesmen who wish to convince you that they know something secret about the markets.
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read=The Richard D,Wyckoff Method of Trading and Investing in Stocks = to get an idea of what does smart money means == basically an entity that controls and manipulates the market to its advantage
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Smart money belongs to the biggest and smartest players in the game. These are central banks, market makers and institutional investors. This is the entire interbank market; Deutsche Bank, Citigroup, Barclays, UBS, Bank of America, HSBC, BNP Paribas and Goldman Sachs. They have a huge impact on the financial markets, so Smart Money will always prevail.
I find it often to be a bit of an overused phrase which ‘mentors’ use to sound clever haha
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Yes, there are many articles to create knowledge.
Smart money is the capital that is being controlled by institutional investors, market mavens, central banks, funds, and other financial professionals. The smart money was originally a gambling term that referred to the wagers made by gamblers with a track record of success.
I would also add such a definition of the term that this is money invested by experienced and successful people.
- market structure
- liquidity
*suply domande - imbalance
- premieme discount