What are your beliefs? What do you think drives markets?

This is a discussion on What are your beliefs? What do you think drives markets? within the General Trading Chat forums, part of the Reception category; Originally Posted by dick_dastardly Does price gravitate towards stops ? Price gravitates to the price levels where the market makers ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Aug 12, 2009, 4:24pm   #8
Joined Dec 2004
Quote:
Originally Posted by dick_dastardly View Post
Does price gravitate towards stops ?
Price gravitates to the price levels where the market makers think the most volume is going to flow through.
__________________
John Forman
Author - Trading FAQs, The Essentials of Trading
Rhody Trader is offline Training literature vendor (e.g courses / spreadbetting guides / eBooks)   Reply With Quote
Old Aug 12, 2009, 4:40pm   #9
Joined May 2008
Quote:
Originally Posted by Rhody Trader View Post
Price gravitates to the price levels where the market makers think the most volume is going to flow through.
How do they help provide this liquidity and stay profitable?
Technically Fundamental is offline   Reply With Quote
Old Aug 12, 2009, 4:54pm   #10
 
cuotes's Avatar
Joined Apr 2009
Totally believe that reasons moving the market dwell far beyond my reach.

What I can see are their reflections, e.g. watching the book for supply/demand, or price patterns or whatever.

If Ben Bernanke would ring me today before his speech, Alan Greespan used to have a brunch with me, Gary Stern were one of my poker-play fellows, playing golf with Timothy Geithner were something usual for me, Jean Claude Trichet used to consult my opinion before buy their suits, or Mervyn King called me every time he had a problem with his wife....

then...

do you think that I would need not even take a look at the chart to put my orders?
__________________
Money is just a consequence.
cuotes is offline   Reply With Quote
Old Aug 12, 2009, 4:56pm   #11
 
2 Posts
Joined Aug 2009
well you could say the market maker, but his actions are derived from the laws of supply and demand, more buyers means that there isn't enough liquidity to buy into, thus he must increase the price to increase the sellers, and to create equilibrium
kkk113 is offline   Reply With Quote
Old Aug 12, 2009, 5:38pm   #12
 
shadowninja's Avatar
Joined Jul 2007
Well, every time I log in to MSN, the euro falls. Every time I walk away, the euro climbs. Ask Masq, he'll tell you.
__________________
The markets can stay solvent longer than you can stay irrational.
My sports trading challenge: http://www.trade2win.com/boards/trad...challenge.html
shadowninja is offline   Reply With Quote
Old Aug 12, 2009, 5:46pm   #13
BSD
 
BSD's Avatar
Joined Feb 2006
What drives markets ?

The sum total of it's participants actions, no more, no less.

If more are buying than selling price follows the path of least resistance by rising, vice versa when more are selling, and you get choppy sideways stagnation when both sides are more or less in equilibrium.
__________________
Markus
Doing without doing
BSD is offline   Reply With Quote
Old Aug 12, 2009, 5:51pm   #14
 
barjon's Avatar
Joined May 2003
money flow

net increase in money in the market = higher prices
net reduction in money in the market = lower prices

eg: market = 1000 units
money in market = £1000
therefore each unit is "worth" £1 whatever its "true" value may be.

market = 1000 units
money in market £1000 + £500 new money = £1500
therefore each unit is "worth" £1:50

jon
barjon is offline   Reply With Quote
Thanks! The following members like this post: tenbobtrader
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
US markets to london markets transition b-man Trading Firms 1 Jul 29, 2009 3:40am
US markets N Rothschild General Trading Chat 71 Jun 2, 2009 10:09am
Rapid Expansion in IT Services and Software Outsourcing Drives Explosive butidonot Spread Betting & CFDs 0 Sep 2, 2008 8:08am
Installing New Beliefs rfk_from_za Psychology, Risk & Money Management 42 Oct 30, 2006 12:27am
A useful addition for hard drives Rognvald Techies Corner 1 Jan 19, 2004 2:09pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)