trader_dante
Veteren member
- Messages
- 4,535
- Likes
- 1,535
Welcome to the hardest game in the world.
Got money? Excellent. Because everyone is out to take it.
Are you Spreadbetting? Meet the dealer. He's waiting for you to log in. He has a good idea you're considering buying the Pound. After all, how low can it go? Most players think the same way.
So log in and pull up a quote. He'll offer you a spread of 1.5861 - 1.5869 on the December Great British Pound. Put in your £10 stake and then as soon as you click to buy, he will join you at 1.5868 bid - 1.5869 offered, taking 3 contracts to offset his risk almost perfectly and taking you for a 7 pip spread or £70 in comissions. He meanwhile pays approximately £2.80 in commissions, exchange and SEC fees. The £67.20 he just made in the click of a mouse is easy money.
Speaking of that trade, the market has moved up to 1.5879 bid. 10 pips up. Let's get a quote to close.
Back to the dealer. He knows all about your position. You are, after all, going to exit with the same house you entered, so when you pull up a quote he knows exactly which way you are going. After all, his computer tells him that of the last 61 trades you did, you never once added and usually look to make small gains, quickly.
So it's 1.5879 bid to close, hit it - route to dealer - will he confirm? Hold on two seconds. The market has dropped to 1.5877 bid - offer a requote. Squeeze the client for 2 pips there. It all adds up.
Hmm, they won't take the bait. Seems they are waiting for 1.5879 again. Hopefully we'll tank and the client will take a loss. What's this? The market goes back up to 1.5879 and they are hitting to close again. Wait 2 seconds. Now the market is heading higher - we're at 1.5881 and surging. FILLED at 1.5879.
OK, so you're often at a disadvantage when you enter. But forget that dealer for a second, he's just trying to make easy money off you WHEN you trade. He's not actually trying to MAKE you trade.
Leave that to the bigger fish. Let's meet one of them. He's another guy just like you. But he has been around longer and has more capital. He's going to have some fun today. The market is coming into a very solid support level and it looks like its about to break. You can't see the size offered but many of the bigger players can. He's offering 400 contracts because he knows people will get infront of him and sell.
Now we're heading down, we've just broken the 1m 50ema and the MACD is looking bearish...In we go, sell, sell, sell...our friend is busy sitting on the bid taking all we're giving him...What's this? 400 on the bid now? Now the market is reversing...and we're back up above the support. All shorts need to puke, fresh longs are coming in. Classic trick and easy money for our "friend". Most of the players are always a sucker for a good breakout.
There must be an easier way to make money. Perhaps someone knows more about this game than you and they'll help out. Got a good tip? Who gave it to you? Perhaps it was the analysts at a certain firm. This firm in question has got some inside info on a merger that will be going ahead in the weeks to come. They want to get on board but the only way to acquire huge levels of stock at a great price is to work the price lower. How do you get shorts into the market? Paint the chart. Break the support levels, drive the stock down. Cross trades, create heavy volume. Build a great long position all the while.
Once you've finished accumulating, start releasing info to clients. The clients that start buying, will push the price up. This is great, the firm can then sell it to them at higher prices. The stock is moving, volume is building, the public is moving in. The firm is sitting on huge profits, they'll use this fresh buying from the public to sell into the rally. After all, that's the only way to shift a huge amount of stock. You need liquidity.
Who's taken your money today?
Then, again, who cares? It was fun.
And there is always the chance you might win.
So lets play again.
Ready to trade?
Got money? Excellent. Because everyone is out to take it.
Are you Spreadbetting? Meet the dealer. He's waiting for you to log in. He has a good idea you're considering buying the Pound. After all, how low can it go? Most players think the same way.
So log in and pull up a quote. He'll offer you a spread of 1.5861 - 1.5869 on the December Great British Pound. Put in your £10 stake and then as soon as you click to buy, he will join you at 1.5868 bid - 1.5869 offered, taking 3 contracts to offset his risk almost perfectly and taking you for a 7 pip spread or £70 in comissions. He meanwhile pays approximately £2.80 in commissions, exchange and SEC fees. The £67.20 he just made in the click of a mouse is easy money.
Speaking of that trade, the market has moved up to 1.5879 bid. 10 pips up. Let's get a quote to close.
Back to the dealer. He knows all about your position. You are, after all, going to exit with the same house you entered, so when you pull up a quote he knows exactly which way you are going. After all, his computer tells him that of the last 61 trades you did, you never once added and usually look to make small gains, quickly.
So it's 1.5879 bid to close, hit it - route to dealer - will he confirm? Hold on two seconds. The market has dropped to 1.5877 bid - offer a requote. Squeeze the client for 2 pips there. It all adds up.
Hmm, they won't take the bait. Seems they are waiting for 1.5879 again. Hopefully we'll tank and the client will take a loss. What's this? The market goes back up to 1.5879 and they are hitting to close again. Wait 2 seconds. Now the market is heading higher - we're at 1.5881 and surging. FILLED at 1.5879.
OK, so you're often at a disadvantage when you enter. But forget that dealer for a second, he's just trying to make easy money off you WHEN you trade. He's not actually trying to MAKE you trade.
Leave that to the bigger fish. Let's meet one of them. He's another guy just like you. But he has been around longer and has more capital. He's going to have some fun today. The market is coming into a very solid support level and it looks like its about to break. You can't see the size offered but many of the bigger players can. He's offering 400 contracts because he knows people will get infront of him and sell.
Now we're heading down, we've just broken the 1m 50ema and the MACD is looking bearish...In we go, sell, sell, sell...our friend is busy sitting on the bid taking all we're giving him...What's this? 400 on the bid now? Now the market is reversing...and we're back up above the support. All shorts need to puke, fresh longs are coming in. Classic trick and easy money for our "friend". Most of the players are always a sucker for a good breakout.
There must be an easier way to make money. Perhaps someone knows more about this game than you and they'll help out. Got a good tip? Who gave it to you? Perhaps it was the analysts at a certain firm. This firm in question has got some inside info on a merger that will be going ahead in the weeks to come. They want to get on board but the only way to acquire huge levels of stock at a great price is to work the price lower. How do you get shorts into the market? Paint the chart. Break the support levels, drive the stock down. Cross trades, create heavy volume. Build a great long position all the while.
Once you've finished accumulating, start releasing info to clients. The clients that start buying, will push the price up. This is great, the firm can then sell it to them at higher prices. The stock is moving, volume is building, the public is moving in. The firm is sitting on huge profits, they'll use this fresh buying from the public to sell into the rally. After all, that's the only way to shift a huge amount of stock. You need liquidity.
Who's taken your money today?
Then, again, who cares? It was fun.
And there is always the chance you might win.
So lets play again.
Ready to trade?
Last edited:
! Nice one.
