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Re: Taking Losses



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You wrote:
> It all depends on your position. In the equities markets, don't the
> specialists play the opposite side to the public's trades?

But who is actually controlling the trade?  It occurs to me that  
the specialists may from time to time allow the little guy to  
control the market.  An example would be the public's penchant for   
"buying on the dips".  After a selloff, the specialists would supply  
as much of an asset to the public as they want, driving the price  
up somewhat.  The public is thus in control.

Then the specialists begin selling large blocks, taking a few  
points relative to when they sold to the public, and driving prices  
down.  Now the specialists are driving the trade and the trend  
continues down.  The public gets stuck with these assets as prices  
fall.

So, if you control large blocks of an asset and understand the  
psychology of the public, I imagine you could do more than just "be  
on the other side of a trade."  You could control the trade and  
drive the market.

- Hacker

---
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