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TFC Commodity Trading Forum

Re: DOW...why? Spike
In Response To: Re: DOW...why? ()

Its a zero sum game in that the buyer wins or looses exactly what the seller looses or gains in a trade.

That does not mean there can not be more peeps desiring to buy than there are peeps willing to sell.

If there are more peeps wanting to buy than there are peeps willing to take the other side of the trade price will increase as buyers bid up price to a point enough sellers are willing to enter the other side of a trade and sell...arresting the rise in prices either for the short term or long term. Reverse on the way down.

Of course, all buyers in the trading world will become sellers in the future if they want to take profits.

The big dogs...the guys who actually buy...say wheat...by the millions of bushels at a time to turn into bread never sell because they use what they buy...the farmers sell to them. Traders are a small fraction of buyers and sellers.

At least that's the way I understand it which means it is subject to the same wrongness as my calls in here are. 😧