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RT's
Almost no one wants to admit to any group of their piers that they aren't
successful at something that they want to be successful at in the worst way.
If any of the stories about how long it took for many of our RT group to be
successful are indicative, it can take years to break even let alone make a
living or find wealth.
I spent a good deal of time thinking about this and why. One thing that I
became aware of is the way a move in the market develops. Someone can
correct me if I have it wrong but this is the way I see it. A large trader
makes a deal with another larger trader to (we'll say for this example) buy
5000 contracts of something at a somewhat higher price. All the other
traders never even get a chance to be part of that trade. When the news of
this hits the floor the price takes a jump. Now the smaller traders (first
on the floor) and then off floor traders begin to respond. Only those that
are very quick get much of the initial move, the rest are being filled just
as the momentum is beginning to change.
This puts most traders in a situation of always playing catch up and that is
a losing position to be in. The large traders know this and use this setup
to their advantage day in and day out. You either get quick or you get
contrarian to survive this.
Scenario number 2 is when a powerful move begins to trend after congestion.
You see the breakout and then you are fearful of a whiplash. But no whiplash
happens, by now things have changed considerably so you think, I can't get
in now because this trend may end any time now, so you wait longer. Finally,
you decide to jump in anyway, just in time for a covering move against you,
you are stopped out at a loss.
You simply can not win if you don't find a way to get around these traps. In
my opinion there are ways to do that. I'd like to hear how some of you think
that they can be avoided or made to work in your favor.
Brent
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