This section covers the inner workings and inner principles that define and drive the markets. Despite being more difficult and apparently less practical than the basics, it’s very important to learn these concepts.
The generally accepted definitions for what a market is, go along the lines of:
~1~. Practical traders know that there’s nothing perfect, all has a cost and markets are mainly based on sentient, imperfect beings with strong feelings and precise plans: us humans. This is the main factor that that makes it possible to make a profit. There are also other practical factors: markets lag behind and smooth demand and supply, markets overshoot their motions, markets have an inertia at turning the direction of price, markets are driven by strong entities each with their agenda. All of those are the work tools of the trader.