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> Okay, here's a trade secret ( how to be a psychic?) I devise for myself after
> observing
> a lot of electronic daytraders under my supervision. We have 15 trading
> terminals in our trading room. I concluded this idea by observing our best
> electronic day trader's actions. Funny thing is , he doesn't know he was doing
> it. I studied his winners and losers, and analyze the winners all has one common
> factor in difference to the losers. Personally
> have lost almost US$50,000.00 daytrading in the old days.
>
> Disclaimer: As with any methods or techniques, this may be a gold nugget for
> some
> and pure unadulterated cow pie for others.
>
> Just for laughs, will send this observation only to those requesting it, don't
> want to bother
> the hardisk space of some serious people on the list.
>
> Remember my disclaimer, so that you won't be disappointed, I never claimed it
> was
> the Holy Grail anyway.
>
> Disclaimer part 2 :Am not selling anything or ever on trading the markets
> even if and when I found my customized Holy Grail, will keep it to myself and
> my descendants.
>
> Regards,
> Felix
>
> Ron Augustine wrote:
>
> > Good point Mark, but I'd like to know how you know whether or not a fake is
> > being set-up in the following situation:
> >
> > 1. Several MMs are on both the Bid & Ask with reasonably balanced number of
> > shares.
> >
> > 2. An imbalance begins to appear. Three or less MMs remain on the Ask and
> > 10 on the Bid. About 5000 shares represented on the Ask and 30,000
> > represented on the Bid (choose your own numbers if you don't like these).
> >
> > 3. In a classic scenario, with 30,000 buyers and only 5000 sellers (so to
> > speak) you would expect the price to rise soon.
> >
> > 4. After a brief period of time passes and a large number of orders are
> > filled in the Spread-- the imbalance suddenly changes (in about 5 to 10
> > seconds) and all the MMS formerly on the Ask are now on the Bid -- the
> > recent buyers are caught holding their respective bags and the Market
> > plunges from one to three points.
> >
> > 5. When I was trading L2, I observed this regularly on the heavily traded
> > Tech Stocks (CSCO, MSFT, ASND, etc.) -- from what I could tell, one of the
> > two scenarios (real or fake) each played out about 50% of the time but it
> > was impossible to tell which was being played out until it was far too late.
> >
> > Question: How do you know when it's REAL and when it's MEMOREX??? (and
> > please don't say you need to be psychic :)
> > ____________________________________
> > At 04:45 PM 8/29/98 -0700, you wrote:
> > >Your points are very well made and correct. Therefore, the object is to
> > >join in with the Market Makers, not to fight them. Learn how to read their
> > >real movement, not what they want the public to think.
> > >
> > >It is so bad, you can almost do the opposite of what a normal person would
> > >think looking at a screen.
> > >
> > >Good trading skills are very important too.
> > >
> > >Mark
> > >
> > >Mark A. Seleznov
> > >
> > >>Agreed. But a marketmaker with order flow is a formidable force
> > >>indeed. In fact, my definition of marketmaker absolutely includes
> > >>access to order flow. They are generally hedged within a range, and
> > >>they have capital, and they can literally fix the prices under certain
> > >>circumstances. It takes more than an level 2 and good intentions to
> > >>enter that ring with a fighting chance -- IF we're talking about
> > >>daytrading.
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