Quote from: MatTheCat on November 07, 2015, 12:00:36 AM

Quote from: jaredboice on November 06, 2015, 09:57:50 PM

You're being sarcastic, right?

No.

The only way to make money out of trading markets, is if their is volatility.

An even better way to make money out of trading markets, is if you are in a position to ensure the volatility and even control it. If this market's price discovery mechanism is based around a few unregulated exchanges, then all the better.

The whale, the market maker, the smart money, buys low, and sells high. The higher he can sell, the better, the lower he can buy, the better.

What is so hard to understand about that?

I think this is oversimplified. Market makers know that they can't maintain the same range of trading patterns for the long term. The volatility attracts more investors and eventually the floor of the market is raised. They know that eventually the price will go higher so if they can front-run a rally early and then use their weight to send it back in the other direction, they make money shorting with leverage all the way back down. Rinse and Repeat. They can't stop the eventual uptrend of a market with great fundamentals like Bitcoin. They can only delay it by influencing market distrotions and try to profit from the additional volatility they create by moving their weight around