Can you explain me market making strategies?

As Martinhoul has said, market making is to collect bid-ask spread, yes, I take some directional and RV positions but no trader on the street admits to taking prop and actually, my firm is pretty generous with our risk limits… I having a limited balance sheet, so I actually have little capacity to move the market and really, I’m at the grace of other people. The MOST important thing as a market maker is to manage inventory and that’s where your skill sets come in. The advantage that I have as opposed to liquidity takers is the spread, that’s it. It’s practically up to me whether or not I want to make a market and that’s probably the worst case scenario. I mean, you could make a market and usually, the best traders on the street will generally always make a market, even during times of great volatility, which is frightening. So in other words, cowboy up and make a market if you want to keep the shop alive. Throughout the day, you should ask yourself “how do I keep my profits”? You’re not there to make alpha generating trades. If you’re making a market, you’re making money, assuming you’re collecting spread if the midmarket price hasn’t changed. As a market maker, it’s absolutely crucial to keep the inventory within limits, it’s not about managing a strategy, it’s about managing inventory. Important stuff I ask myself when I’m on the desk is, how should I adjust my bid-offer prices, yes, I might make a mistake with a bid too high, but then I will take that into account and lower my bid. Ways you can address this is by adjusting based on your inventory. Having a big inventory is the biggest risk because you can no longer make trade or second if someone lifts my offer, my counterparty thought my price was too low and this is something I should take in effect.