Wednesday, September 14, 2011

German DAX and the Greatest Lies

I really WANT to go short at this time.

Remember opposite George Costanza? Well doing nothing is the option I am choosing.  

One of the great lies out there is that Forex is the largest market in the world.   The purpose of this lie is to make you think that markets are highly liquid, and that your positions won't be hunted, that they are not thin.

But sure as shooting, if you drop a 100k order into the Forex market, it is lie dropping a fawn in the middle of a pack of wolves.    They will stop, shell shocked for the moment and assess how to make the kill.    One trick I use to protect a stop order, if I am paying attention, is to put a buy order underneath it.   That scares the market upward....they hate to "fill" an order.  

And they will definitely run your static stops.  The quants keep moving their stops around...even putting up fake orders and then quickly removing them.   Of course, anything that is legal, and many that isn't will be programmed into this trading warfare.

Dax -linkable version, falling wedge$DAX&p=D&b=4&g=0&id=p20551320819&a=243817560

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Insightful and Useful Comment!