Who Is Really Controlling the Market?

👋Hello everyone, it’s great to see you again in today’s conversation.

Today, we’ll dive into a very interesting topic: “❓Who is really controlling this market? Are you just a juicy prey, a pawn following the path laid out by the big institutions?”

To answer this question, we need to look deeper. The market in general, and XAUUSD specifically, is like an immense ocean with many currents flowing in different directions.

At the top of the chain, we see that trends are most influenced by economic factors, global political events, wars, and so on. Can you imagine how much influence central banks and large investment funds have? Their decisions can create massive waves, shaking the entire global financial market. You know why we only trade until Friday, right? Because most of these major institutions are closed on Saturdays and Sundays. For example, when the Fed decides to hike interest rates, or when big funds buy millions of ounces of gold, immediately, gold prices will either surge or plummet.
(To gain a better understanding of how it works, take a look at my previous post)

However, big institutions cannot always control the market as they wish. Surely, you've seen sudden reversals or significant price fluctuations within just one day. And this is where the role of you and other traders comes into play.

Let’s think about it. In today’s modern financial market, where information spreads at the speed of light, you – a retail trader – can influence significant price movements if you know how to seize the right moment and turn it into your profit.

Think about the times when you’ve seen gold prices spike due to certain news, like a Fed decision or a political crisis. That wasn’t the result of a big institution, but rather the market’s response. And when you and thousands of other traders act in the same direction, you’re creating waves – even if they’re small – but they are enough to shift the market's flow in the short term. The market is a psychological reaction, where emotions, expectations, and fear drive the actions of all participants.

Yet, we cannot deny that the influence of central banks and global market fluctuations is immense and overwhelming. At times, our actions may just be a reaction to FOMO, inadvertently turning ourselves into prey without realizing it. The only way out is to equip yourself with the knowledge and experience necessary to navigate the market. If not, from the moment you step into trading, you’re essentially a pawn being controlled.

The market is a vast ocean. Central banks and large investment funds are like islands within it, but each one of us is an essential part of that ocean. Even if you’re just a grain of salt, many grains of salt together make the ocean salty. We are all connected, no matter where we are or what platform we use. TradingView, for example, is one place where we can all link up.

Trust in your own value, take action, learn, and share your insights so that both the trading community and TradingView itself can continue to grow.

I wish you happy trading. Don’t forget to support me by liking this post!🚀