How do we follow big sellers/buyers

[darrenmo]

I often hear people say that price moves because there are more buyers than sellers (or vice versa). I also hear that "most traders are wrong".

There has to be a buyer for every seller. It’s not the number of buyers and sellers that matters, but rather with the number of shares that people want to buy/sell.

So, more buyers do not make price move up, rather when the number of shares that people want to buy at the current price exceeds the number of shares that people want to sell at the current price, the price will go up.

Ok, but how about the fact that most traders are wrong. Well, imagine the price moving up to a resistance point, it hits and then drops. What's happened here? All that's happened is the number of shares that people want to sell at that price exceeded the number of shares that people want to buy at that price - or rather, the majority "vote" wins.

If most traders are wrong, it means that there are a few big sellers (with lots of shares) going in the opposite direction to the large majority of smaller buyers.

So, how do we work out what the traders with a lot of shares will likely do?

 

[progix]

I think this can be possible by social trading where we can follow our senior traders and many senior traders get the chance to showcase their skills to be copied by junior traders.