The Basics of Trading

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Old Sep 13, 2003, 10:18pm   #271
 
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Maybe in your case MM means modestly modest ;-)
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Old Sep 13, 2003, 11:30pm   #272
 
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Wayno if you were a market maker for 17 years perhaps you could enlighten us as to how MM's play the game.
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Old Sep 13, 2003, 11:32pm   #273
 
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Well my oversimplified understanding of market makers and trading produced a FINAL profit of $1640 on friday (Convergent pait trading of short MEDI / long JNPR) there again what do I know about market ,, Only been pro 6 years...
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Old Sep 14, 2003, 7:24am   #274
 
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Grey 1 - like I said I really don't want to get into a pissing contest with you , and if your conspiracy theory works for you, then great, you stick with it. And maybe we'll work on who really shot JFK sometime soon?

I think this is really detracting from what is a useful and informative thread with FTSEbeater and TBS putting a lot of time and effort into trying to help a lot of people. Whilst I don't personally use TA, I think it's even helpful to nonTA traders to actually understand the basics of TA, so please, FTSEbeater & TBS, keep up the good work.

Wayno
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Old Sep 14, 2003, 11:44am   #275
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market makers can and do move a stock to any price they choose and they will especially force a stock to retrace a fast move that caught them out so they can recoup the losses they made on that move and conrol their inventory
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Old Sep 14, 2003, 11:52am   #276
 
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Stock longshort risk reward ratio
KGF 270 614 2.33
BP 439 6 11 1.83
Barc 478 18 12 0.67
Sbry 274 4 16 4.00
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Old Sep 14, 2003, 12:10pm   #277
 
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Stevet :- trust me, most Hedge Funds & PM's centralised dealing desks know more about a stocks price than a MM - mainly through the IOI system. Yes, a MM will move a long position up hoping to attract buyers, but that only really works with small cap stocks with 1 or 2 market makers. AND the certain knowledge that he ( the MM) has finished all the sellers. Otherwise all that will happen is you'll have a spivvy institution on, trying to have your eyes out by selling more stock. Also, sectors being equal, a stock like (say) Cookson (CKSN) with something like 12 MM's wil be a lot less volatile than some AIM stock with only ( say) Winterflood's and maybe another MM. Also, contrary to various conspiracy theories, there is NO collusion between MM's at all. A MM may have a relationship with 1 or 2 other firms only a personal level, but generally, it is dog eat dog out there in a high stakes game. The private investor doesn't even show up on the radar. MM x would much rather **** MM y - the man in the street doesn't come into the play.

Rather than continually (try) to correct the common misunderstandings regarding MM's- I'm probably going to start teaching a seminar on " The way the market REALLy works" guess there's certain people on here who want want an invite!

Wayno
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Old Sep 14, 2003, 12:13pm   #278
 
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Stock long short risk reward ratio
KGF 270 6 14 2.33
BP 439 6 11 1.83
Barc 478 18 12 0.67
Sbry 274 4 16 4.00

Hi FTSE
I really have enjoyed reading your views and support you have been giving to the beginners. I picked up trading at the start of the year when i met genti at work. Ive now started to trade small , but i feel that after reading your advice i have picked some fundamental principals that i should have had !
I would really love some advice on the above trades and see what you think. When i find out how to post charts, ill indicate my reasons for resistence and support. My main reason for going long on all are the fact that they have all touched the up trend line and have surpassed the down trend.
would you say that SBRY has displayed the cup and handle, and do you think that there is support at 270.

Recently i have been quite succesful as i have now been following strict principles and am now moving into profit after some initial stupid trades, that i actually think have done me more good than bad.
Thanks for the help already , with your posts.

Half Butt
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Old Sep 14, 2003, 12:39pm   #279
 
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A System

The below is a link to various trading systems......Look at "SNOSURF"......his system is simple and hopefully stops you overtrading...a beginner malaise.


http://www.elitetrader.com/vb/showth...6&pagenumber=5


Hope this helps some of you.

great work FTSE.

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Old Sep 14, 2003, 3:01pm   #280
 
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FTSE Beater

Thanks for all the great advice, my trading strategy has improved immensely from reading your posts. I was just curious whether you are a full time day trader or you still hold a full time job?
The only reason I ask is that I would like to pursue trading as a full time job, when I am confident enough that I can consistently make money and I would like to know how you made the transition. If you are not a full time trader could you outline your typical trading days activities and how you access trades from work, as my only problem is that I have limited internet access whilst at work.

Thanks
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Old Sep 15, 2003, 8:02am   #281
 
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FTSE Beater started this thread Hi Pitbull

It's great to hear your trading is improving.

At the moment I'm cheating and I'm a part-time trader. I work in the mornings until 1 and from then on I trade the US market.

If your going to be trading from work, then your strategy must fit around it. You need to ask yourself, do I have constant internet access, am I going to be dragged off to meetings with positions open. If your going to be away from your desk a lot then your looking for a longer term strategy using end of day charts and looking at the quotes whenever you get a chance to.

It sounds like you can only look at quotes every so often so the above should work well

Trading from work is fine as long as 1) Your trading doesn't suffer, 2) You can still keep your trading discipline and 3) Your work doesn't suffer. I was guilty of the 3 one

I made the transition when I found I was making an ok trading wage (equivalent to half my working salary) and I knew I could make more working full-time. When to change is always difficult. It's best to introduce trading slowly. If you suddenly rely on it as your only source of income then it puts too much pressure on your trading which is the last thing you want. The best way is to (when you think your ready) take 2 weeks off work, trade and see how you go.

HTH
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Old Sep 15, 2003, 8:49am   #282
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Nice post Mark,
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Old Sep 15, 2003, 8:58pm   #283
 
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Trust me, trading and working = BAD NEWS.
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Old Sep 15, 2003, 9:19pm   #284
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I thought the idea of trading was that it beat working for a living?
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Old Sep 15, 2003, 9:29pm   #285
 
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Not sure about that, Chartman. Plenty of people do a day job and trade US stocks in the evening.
Some like having two income streams, others give up the day job voluntarily to trade. Some work part time, or on contract jobs.
I myself gradually then finally gave up my profession to trade full time and managed perfectly well in the interim.
I think it depends on the day job and what you want out of life.
I wanted more time with my family and for my interests and more money, enjoyment and above all freedom - and that was even though I had my own business and wasn't answerable to anyone.
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