Emini Day Trading
8 Sep 2010 by admin, Comments Off
One of the most important concepts to understand in trading is that of professional activity, or “smart money.” These institutional players control incredibly large amounts of capital and so for this reason, they cannot simply waltz into the market and place a buy order.
In a flat market, such a large buy order would surge the price of the underlying instrument (whether stock shares or futures contracts) up against their own buying, only to come back down once their purchase was complete. Conversely, they simply cannot sell into a flat market for the opposite reason.
