Sachs of money

reactor

Member
82 1
hi fellow traders!

i read an interesting article on the 26th june about goldman sachs and their profits for the last quarter. gross was $2.01 billion, of which $1.59 billion was from its traders in fixed income, commodities, and forex.

it will probably be not such a surprise to some as goldman sachs is the biggest dealer in the word when it comes to securities.

the first question which i asked myself was: ' how did they do it?' i'm sure everyone that reads this will also ask the same! the obvious is that they have to resources to know when to enter positions, but apart from having the bucks to move the market, what other advantages do they have?

i'm not going to accept that the 'planets aligned' for them yet again!

thanks for your time!
 

SUNSEEKER

Established member
872 12
Hello fellow Bournemouth man,

When you find out what goldman does, let us know.....to some degree I am sure they are BIG trendfollowers, combined with the best people and best research
 

Trader333

Moderator
8,655 981
GSCO do not enter or leave markets (particularly shares) when they think that they will move because it is they that "MAKE" the market move in whichever direction they want to. They have the power to stop a rally in its tracks, reverse it and start it forward again if they so wish. In addition to this they will play all sorts of tricks to get people to sell when they wish to buy and get people to buy when they wish to sell. In a market where they are known to be the lead Ax, no other market maker will try and oppose them in fact there is very little real competition between the main market makers.

In addition to this they have very large institutional clients who are putting more and more business their way.

With this kind of power it is hardly surprising that they make very large profits.


Paul
 

Naz

Experienced member
1,391 24
I always keep an eye on what Goldman is up to.If you've got a Nasdaq level 2 screen his code is GSCO.If he's about to move a stock i'm watching i sure know about it.

As Trader333 says he makes a stock move.Viewing the level 2 screen lets you see what he hopes to do next.

Thats one of the reasons that you have such an edge if you're Nasdaq level 2 day trader.

If i couldnt see what Goldman is up to i might as well be trading a Nasdaq stock with one eye shut.
 
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Naz

Experienced member
1,391 24
Trader333 said:
They have the power to stop a rally in its tracks, reverse it and start it forward again if they so wish.

In addition to this they have very large institutional clients who are putting more and more business their way.

With this kind of power it is hardly surprising that they make very large profits.


Paul

With the power that Goldman exerts in many Nasdaq stocks its not surprising that its not any type intraday t/a signal that he uses to move a stock but his order flow.

Many times he is subtle in showing his next move so the casual viewer won't notice it.But understand this subtleness and i argue that anyone can profit.You wont be guessing or over analyzing a move but trading along side someone who makes large profits from the markets.
 

waqr

Active member
128 0
Naz,

Surely these guys bluff and double bluff and generally try to hide their true intentions most of the time?
 

Trader333

Moderator
8,655 981
Yes but if you know the games they play (which Naz very clearly does) then you will have a huge advantage over the majority who simply dont.


Paul
 

Naz

Experienced member
1,391 24
Its the way you see Goldman buying that counts.Of course the casual trader just wants to turn on the screen and see Goldman waving a big banner saying hey i'm a buyer now.If he cant see that he might say oh i cant see anything so he must be bluffing.

The fact is that he/she hasn't taken the time to learn how to read the screen.To me its black and white.Most times he doesn't hide his intentions at all he's that big,especially in the fast morning moves.Other times he just uses standard mm buying techniques that any level 2 player would have picked up on.
 
 
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