How different are the tactics adopted by the market makers from those of institutional participants whom you call Smart money and the newcomers whom you term as dumb money.
Why speculation auctions have to be conducted similar to Macro level or long term investing using essentially Macro events as triggers to unleash liquidity or rotational trades while it is good enough to know the volume of the market.
In other words, can we term micro trading as non fundamental trading or trading based on bidding antics or trading based on the internal market forces of competition , demand and supply of liquidity or volume based on the price action, the time action, and the required adjustments to be made to repricing from time to time to ensure the market makers don't go out of business.
It can take the forms of black swan kind of liquidity being injected by designated market makers to keep the market alive, flash crashes, quarterly or yearsly or seasonal patterns being repeated, and if everything fails when markets go wild, then market crash is allowed to take place .
Should a retail speculator prepare for all this?
Most of them are using a variety of strategies and tools: mechanical rules (like me), trading by intuition (like me) automated/ semi automated algo robotes, technical oscillators, forecasting indicators mainly based on averages etc.
Does micro Speculation market need a cause like a Macro event to understand the effects happening in the forms of trends, reversals, consolidation etc.?
Or just a simple indicator like volume can take care of the analysis?
Practice makes a person perfect