Wednesday, November 06, 2013

Sharks in the market

The traders are always focussing on the 'syndicate' or 'algo' which is out to 'get them', causing them to lose money or not make as much. I'd like to start a series on who is the biggest shark in the market. And there is a pecking order on who the biggest sharks are.
 
No 1 shark: The Exchange, no matter what the traders or syndicates do, the exchange is printing money every day, rain, hail or shine. They are happiest when traders overtrade and churn volume, so it comes as no surprise that they market their 'marketplace' to encourage overtrading and churning of volume. That is why every year they have 'Prize' for the top churner of volume as Local Participant.

Akin to the Great White Sharks in our oceans, their job is to search and destroy.

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"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil

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From Dragons and Bulls by Stanley Kroll
Introduction and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system