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Interesting reading Ric. Fine so be or become a market maker. I've
never been one myself but if it is like any business selling goods
they must have a way to buy wholesale or they wont make a market for
long. I freely admit that I don't know enough about market making in
the financial markets to comment about it. Ira is the only one on
this forum that I know of that has said he was a Market Maker. There
may be others.
If what I know of the history about the crash of '29 is right only a
few like Will Durrant were foolish enough to think that they could
turn it around. That kind or crash is rare but it does happen. As I
see it we are still on the brink of anything like that but if prices
go much lower we will have broken the very long term upwards channel
in the S&P. I don't know why the market should crash now but the
political timing would be interesting. Just saying the word crash
makes some traders buyers. The word Bull makes some traders sellers.
If they can be successful at it more power to them.
Prosper
>
> Perhaps, you are right from a single trade, trend following
> perspective. Certainly that kind of trading often has a
reasonable
> amount of stress associated with the style. You appear to refer
to
> stress indirectly with your 'thick wallet' phrase.
>
> Perhaps there are other perspectives.
>
> The market makers seem to make out OK buying into the falls.
>
> There is a counter-party to every trade in a futures market. The
market
> makers in aggregate must take the other side of the balance of
outside trades.
>
> If the market is falling heavily, it is a reasonable assumption
that there
> are probably more outside sellers than buyers. If this is true
the
> market makers, in aggregate, must be net buyers.
>
> So your advice would seem to be inappropriate for them - or at
least they
> are not taking your advice.
>
> There is often more than one perceptive to most topics.
>
> The market makers are providing a service to the net selling of the
outside
> traders. When you provide a service, you often get paid.
>
> There are many ways to trade successfully, not all involve a single
trend
> following approach.
>
> Perhaps, the other ways to trade have concepts you may not may have
> envisaged and advantages that do not include fear and stress.
>
> Regards, Ric.
>
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