Module 1 — Foundations
Who is on the other side of your trade
4 minute read
In plain English
Every time you buy, somebody sells. That somebody may be a retail trader, a market maker, a pension fund or an algorithm.
Why it matters
If you assume you are trading against people with more data and faster execution, you will size and plan more carefully.
Example
A market maker may sell you shares simply to keep the market orderly, not because they think the price will fall.
Try this
Before your next paper trade, write one sentence: who is likely selling to me here, and why?
Common mistake
Assuming the other side is always wrong.
What this does not mean
It does not mean the market is rigged. It means you are one participant among many.
Educational content only. Not financial advice.