When most traders have strong opinions, market does the opposite
Most retail traders lose money.
Before the next significant wave market will do the opposite to what is currently a consensus: be boring, reduce the volatility. I call it a "Short FOMO" trade.
- Recent huge daily moves lured a huge number of new retail traders --> fresh capital
- Lack of experience ~ poor risk management + emotional trades
- Quiet market encourages larger bets and leverage
- Institutional traders holding strong opinions about what market "should" do from now (consensus seems to be another +/-10% move)
Before the next significant wave market will do the opposite to what is currently a consensus: be boring, reduce the volatility. I call it a "Short FOMO" trade.
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