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Who trades on the stock exchange?

It’s always good to know who you’re trading against, and that’s why in this article we’ll discuss who we can come across when trading on the stock market.
The largest group on the stock exchange are funds, the largest of which are pension funds, then hedge funds, a large component is also investment groups, banks or algorithmic trading systems, etc. It is important to know that we are up against huge companies with huge capital. If we know how they trade, we can ride on trades with them or choose strategies where, for example, we will not fight with trading algorithms.
Retail traders also trade on the stock exchange, which is us – individuals in most cases with small capital. Therefore, never think that the market will go your way.

Other big players

We also stand against mathematical algorithms, high-frequency traders and market makers. Market makers supply liquidity to the market and make the market. They are high frequency traders who see our buy orders before our broker fills the trade. What we want to buy, they buy in milliseconds, they drive the price up and we have to buy a little more expensive.

We can mention Karel Janeček as a market maker, he is one of these traders against whom we trade.


Advantages of a regular trader
If you think you don’t stand a chance against these players, you’re wrong, you just can’t play their game. Most beginning traders start out the hard way. They start trading minute charts with little capital, and because their capital is small, they take big risks and trade too often.
The fact that we are small players is not always harmful, on the contrary, in many situations we have a significant advantage against big players. It takes them a long time to build their position and to get out of that position. Achieving such a higher evaluation is very challenging. Although they have their own analytical teams and probably more information than we do, which they evaluate more effectively, but we can see their purchases and can therefore follow the main trends.

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