Market Maker Tricks

[a320]

I though a brief list of the tricks Market Makers play would help the newbie L2 Trader. I don't intend to give full detailed explanations, but rather highlight the names given to these tricks so people can search the net and find out how to play them!
I don't want to impinge on peoples courses, so if you want to learn from the best see Nas!

I'll start with the most popular, hope people will add!

Head fakes
fading the trend
spoofing


Cheers a320

 

[Trader333]

a320,

How are you getting on with your Level II trading ?


Paul

 

[oatman]

I've had a few tricks up me sleeve over the years but I never gave 'em names :cheesy:

 

[a320]

OK Thanks paul

As some people know from my time in the chat room I'm heavily in to TA especially Candles but MM's use people's reliance on TA to their own cunning means!
A good understanding of the level 2 screen is a must in order to level the playing field, even then we need to be aware of the MM's mischief
Nobody likes being spoofed, faked or faded so I hope a little knowledge will help the newbie traders in the art of level 2.
Once you know the game's MM play, it can be a joy to watch them at work!

Cheers a320

 

[money123]

anyone know of any books out there discussing market maker tricks?

 

[Trader333]

I understand that this is a good book on the subject although I haven't bought it myself.


Paul

http://www.amazon.co.uk/exec/obidos...898/sr=1-10/ref=sr_1_0_10/202-0505375-7774265

 

[a320]

People also recommend ,
"The Nasdaq Traders Tool Kit"
by Rogen Labier, again like paul I haven't read it, so I can not really comment on it, although like most Nasdaq books its written pre SuperMontage and decimalization.


Cheers a320