|
PureBytes Links
Trading Reference Links
|
>
> >Liquidity can be a real problem.
> >
> >When you are right, you struggle to get a fill, because there
> >is a lot of competition for the liquidity at turning points. When
> >you are wrong, it is very easy to get a fill..
> >
> >when you are nailing market turning points, you find
> >there isn't enough liquidity..
> >
> >Neal
>
>This statement seems counterintuitive to me. At turning points, there is a
>balance between buyers and sellers and liquidity should be at its greatest.
>When a market is trending, buyers and sellers are out of balance and the
>market moves. Are we talking about the same thing?
>
>Thanks,
>
>Dan
Dan,
Think about it this way.. If you manage to predict the high and the low
of the day.. What are your chances of getting a fill at those two
prices, the high and the low? There are very few trades at the
high and the low, usually. Often the chart reverses so fast at those
levels.
It is very easy to get a fill when the market goes against you,
more difficult to do so when you are right. Even more difficult if you
are precise.
If you haven't struggled with this a lot, try Fibonacci!
Joe DiNapoli wrote an excellent article on this (published years ago
in Stocks and Commodities magazine). It was about the problem
of X'd trades (cancelled trades) at turning points.. If members are
interested I'll locate it on the web for you.
If you haven't had a trade cancelled by a floor trader, keep getting
better... It will happen.
-Neal.
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|