Optionality and Returns
How do we take advantage of positioning? Positioning is known as the collective stance of market participants regarding direction – are the market participants broadly long or short? It is important to stay aware of people's emotional state with regards to price. It is a clear sign of positioning, as the majority spend their time on social media giving up their hand. Unknowingly, of course.
These are things that while illusive at first, are obvious as daylight after some analysis. Fear drives humans more than all other emotions, which is why it is constantly aimed at you. Carry that over into an arena where most people are lost as to how to operate in the first place. Pandemonium. This is where volatility comes from, which leads to wild variations in price from one moment to the next.
Learning to identify these pain points in the market are how you speculate from a professional vantage point. How so? You are letting the novices do all the work for you. Enjoy.