|
PureBytes Links
Trading Reference Links
|
Ira wrote:
"understand what you are doing, and how the system works."
I do believe it is necessary.
"They also get the breakout traders. they take the market to a new high
and then slam. They also change the rules to suit the floor traders and
change the margin requirements in order to force liquidation. when they
smell blood they will go for the kill. They have no mercy for the
unskilled and untrained."
Petty scary, isn't it?
"Remember those traders are taking the other side of every trade that
comes onto the floor. The floor trader is taking the other side of
Archer Daniel's, Cargill, Solly, and every other house on the block."
Has anybody know the floor trader who could take the other side on
Archer Daniel? There are nobody who take the other side. When the
future of option trader take a position (at least of any size) it is a
market maker who "take the other side" and simultaneously transfer the
position into the other instruments to became "neutral". The purpose of
the Exchange is not to "take the other side" but to assist us in taking
the position (not for free, of course). There are a few good books
describing the work of market makers.
"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."
Maybe, but a very "little".
|