|
PureBytes Links
Trading Reference Links
|
Doctrader's Home Work Assignment for the New Year
Modern Auction theory
http://www.cisco-futures.com/Auction_Market_Theory.html
"A premise of Auction Market Theory is that an overarching
mathematical formulation of a market distribution is not possible
with current market understanding and mathematical capabilities.
In view of the complex nature of auction markets, a closed form
solution may never be possible. The utility of AMT is in its
potential for explaining how the market works. Then, a practitioner
(trader) has valuable information upon which to base trading
decisions."
The auction market has a buyers and sellers with multiple contracts,
not just a buyer and a seller being equal on a 1 to 1 basis. Suppose
buyer #1 buys 100 contracts, he may represent 50 sellers averaging
only 2 contracts per person. It is the number of contracts that make
the imbalances in the auction market, not the same number of buyers
and sellers. Those who control the most contracts, make the market
to those buyers and sellers. It is simply supply versus demand.
Have you noticed in the morning when all the small buyers and sellers
are jockeying for a position in the market, when a one big buyer or
seller will cause the average volume to spike! When you see a volume
spikes, (by watching the transaction log), you will see the big
contracts orders come in and change the course of the market's
current trend. I see this happening all day long. Those with the
most money and who can afford more time, and losses, can ride out
those wiggles and market noise, whereas the small trader takes his
smaller wins or losses. The NYSE does this in the morning when there
is "news pending" or there are "order imbalances", lol, clearly
giving those who have the most money, i.e. contracts, to control the
opening prices. The key to our auction market is that "big money"
talks and bs. walks. Therefore your over all trading strategy
should be focused upon where 70 % VOLUME (i.e. prices) spends it's
time trading. If go to the CBOT, they are giving away a free
live "market profile", detailing where 70% of the volume and price is
trading at during the day. http://www.cbot.com/cbot/dow/page/
Your Weekend home work assignment, if you choose to understand the
market, will be to click on the links below. If you do not accept
this assignment, then next years trading results will be the same as
this years trading result! Lol!
http://www.cisco-futures.com/np_visualgraphics.html
Also, with addition information, you can determine how much money is
wagered at each price points in the market! Here is an Excellent
tutorial about different aspects of market data that most traders
never see! I think your eyes will be opened! Take the 5-minute
lesson; see if you like what you see, or in most cases, what you
didn't SEE!
God Bless
Doc
http://groups.yahoo.com/group/docsstockclock
To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
Yahoo! Groups Links
To visit your group on the web, go to:
http://groups.yahoo.com/group/equismetastock/
To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|