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It is no secret where the stops are. YOu can look at any chart and see. They
also get the breakout traders. they take the market to a new high and then slam
it. You can do anything you want on or off of the floor if you know how. I
have stated before, understand what you are doing, and how the system works.
Then work the system. They also change the rules to suit the floor traders and
change the margin requirements in order to force liquidation. You shouldn't
play the game if you don't understand the rules and all the other stuff that
affects your ability to conduct a profitable trading business. Is there any
business that you would enter and not know what your competition is doing. what
gives them an edge over you and how you would overcome it to become profitable.
This is business, like any other. Treat it as such and you will be all right.
Most of the the floor traders I have known or worked with have been honest and
abide by the rules as set forth. But like any other business when they smell
blood they will go for the kill. They have no mercy for the unskilled and
untrained. It is their livelihood and they will fight for every teeny there
is. You have to be just a tenacious and twice as smart to survive. Remember
those traders are taking the other side of every trade that comes onto the
floor. If the party buying or selling is informed, who has the edge. The floor
trader is taking the other side of Archer Daniel's, Cargill, Solly, and every
other house on the block. Your 5 or ten lot isn't going to make them or break
them and running the stops, when the market is thin, is a way of getting a
little back. I don't begrudge them that. Only when it is me the get. Have a
good week end. Ira.
BrentinUtahsDixie wrote:
> As I have not had the opportunity to visit any trading floors I simply am
> reporting on what I have found out over years of trading and reading about
> trading. Those who run stops are most often floor traders and other large
> traders.
>
> >From the Futures Magazine October '95 article titled CAN YOU BEAT THE PITS
> by Mark Etzkorn "Locals routinely go stop hunting". The entire article is
> about now to compete with the pit traders and talks in detail about how the
> pits work. I recomend it to every trader. Unfortunatly, I have no way to
> post it. You should know what you are up against. I have even read that at
> some Exchanges floor traders can actually find out where stops are resting.
>
> After losing a sizeable amount of my trading account I knew that I could no
> longer trade using stops but using no form of protection was as bad because
> losses were sometimes in the thousands. Thats when I began using options and
> it has made all the difference in my trading. Nuff said.
>
> Brent
> -----Original Message-----
> From: Ron Warshawsky <rwarsh@xxxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Thursday, May 06, 1999 10:15 PM
> Subject: Re: Stops/Michael
>
> >
> >Brent,
> >
> > Can you please, if you have this information, describe in better
> details
> >who are the stop runners and what methods they are using to get trader's
> >stops?
> >
> >Thanks,
> > Ron Warshawsky
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