The stupid money decide direction?

Funny but likely true.

So what will the smart money do when they realize stupid money is becoming smarter?

 

Money is a medium of exchange, never knew that they had intelligence. LOL

 

UK brokers gave to display the percentage of clients who are losing money: it's typically 70-80%. Maybe we can call this the dumb money.

Some also display client sentiment - what percentages of open positions their clients hold on major markets are long and what short. Typically in an uptrend most are short, and in a downtrend most are long. Maybe we can call this the dumb money too.......

 

You don't understand. They get to write (and re-write) the rules.

 

If they can.

 

Stupid money started this topic, and believe they are getting smarter.

 

I'm in the US, but depending on how detailed this information is and the size of the brokerage firm, this information could be used to your advantage. Especially if you have multiple accounts at several large brokerage firms that display this type of information. Is this something that only the UK does? I've never seen that type of data provided by a US brokerage firm. The most I have seen is Fidelity would display their most actively traded securities, but nothing else. Not percentage of clients short or long in a security.

 

Client sentiment indicators are useful but the brokers are not compelled to show them. It's very common to see a forex pair for example in a strong well established uptrend and 80 or 90% of private retail clients with positions in that pair are short - so some traders use a this as a negative indicator - their bias will be to take the opposite direction to the majority of other traders, since we know in the EU and UK the majority of these other traders are net losers.

 

Stupid money cannot become smarter because of its unlimited existence.

 

Sounds damn philosophical. Speaking of which, there seems to be a philosophy for everything these days. Besides the usual boring stuff like the philosophy of mind or the philosophy of science, they're branching out into pop culture with the philosophy of film theory...and even dare to offer their own superhero narratives (yeah, I fell fast asleep to that one). Be that as it may, they even have a philosophy of money and finance (click the damn link if you're a natural cynic). But no philosophy of trading AFAIK. Now wouldn't that be an interesting subject, especially PHILOSOPHY OF DAY TRADING?