Hi intermilan04,
Thursday, August 31, 2006, 9:41:19 AM, you wrote:
i> - When I follow my system, I get bad pricing because sometimes
stocks
i> gap up due to my order being placed overnight
My guess is ... that you imagine you are affecting the market, but
actually you are not. I've known some young traders that *way* *way*
*way* over estimated the affect of their own trades on the market.
More than one I've known actually thought they could *support* a
stock by adding to a sinking position. They had money, enough to buy
fairly large positions, at first. All long gone.
What they could not see was that while they were seeing only bid and
offer sizes of several hundred or several thousand shares up and down
the tree, there was someone *working* a sell of a million shares, and
not tipping his hand of course -- selling, disappearing, waiting for
the ultimate rebound, selling again, disappearing again. These few
thousand share guys imagined that they were big, but in reality they
didn't have any idea how big big actually is.
In the rare case that YOU are *actually* THE MARKET ... don't be. And
I could not be more serious. Run away, don't walk, from those
shallow liquidity traps. They see you coming, they are waiting for
you, and believe me, you will be like a cow crossing a
piranha-infested river when they get done with you: nothing but
bones.
I will say this one last time (I hope): You *cannot* trade markets,
particularly buying them on the open at market, if your trade affects
the price. If you continue to do or believe otherwise, prepare for
pauperdom.
Yuki
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