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I am a floor trader and I think the biggest misconception in trading is the
idea that floor traders are all acting together in concert. Floor traders are
individuals competing with each other and you and the large pools of
institutional money.
Having said that, I will also say most floor traders are very familiar with
the charts and any one with experience can make a guess about where stops will
congregate. If the market approaches one of those areas in the absence of any
other feature someone will step out and sell a new low or buy a new high. He
takes a risk and may be right or wrong and find some stops. Stop orders sre
not advertised all over the floor and traders don,t band together and conspire
to get them, but if placed in conspicuous spots they are vulnerable to normal
market forces.
Bruce Lawrence
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