Short excerpt from a YouTube video where two speakers discuss fundamental basics for beginner traders: understand how markets actually operate (dominated by institutions and algorithms) and that algos react to buyer/seller behavior and aggression rather than simple visual patterns. The guidance emphasizes learning market mechanics before risking capital.
If I was beginner to this, what would you say is the absolute fundamental basics they need to understand before they put their money anywhere?
Before you put money in, I think you first need to have the basic fundamentals of how the market works. And the market doesn't work the way you see on social media. Big institutions are the ones that move the market. The market is also done by a lot of algos. Now everything is high frequency trading. They're not looking at a pattern and saying, this is the pattern that's formulated. So we need to buy more or we need to sell more. Algos are operating based on the behavior of buyers and sellers. Well, are buyers more aggressive? Are sellers more aggressive? Are there more passive buyers? Are there more passive sellers? Who is in control of price? They will respond off that, not patterns.
