Open trading account 
Introduction
- The article is great, aknowledging that trading is about human behavior.
Focus
- When trading and no matter what you do the price goes against you it's because you do something perfect. Right, perfect. Trading randomly would be a 50/50 chance to be wrong.
Market
- "If you want to buy a stock, ask who is selling it."
Who is selling? Scramble! ..and others. Perfect, we know he's always wrong so let's buy and move the price in the other direction.
This is the definition of the market.
Price
- It's not the number of traders who decides the price, it's the account size.
The point
- "Price will be moving because of imbalances between buy and sell orders, coming from a lot of participants who doesn't know each other."
Wrong! Just because we don't know them it doesn't mean they don't know "us". Not us as retail traders but the hedge funds. Deutsche Bank said they have 800 hedge funds as clients, so they know all of them and they know what is their position. Also other exchanges are selling their customer order flow which is exactly that. Buying information on who's buying or selling and how much.
Accept and act
- "Since we do not know what all the other participants will be doing: once entered the trade, anything can happen"
It's your job as a trader to know what others will do after you enter the trade because they'll decide your p/l. Not knowing that is called roullete.
Be balanced
- Wishful thinking is an enemy to everyone.
Conclusions
- I liked the article because it shows there is a moment in time when you have to realize traders are in cage and to become successful you have to escape.
- The article is great, aknowledging that trading is about human behavior.
Focus
- When trading and no matter what you do the price goes against you it's because you do something perfect. Right, perfect. Trading randomly would be a 50/50 chance to be wrong.
Market
- "If you want to buy a stock, ask who is selling it."
Who is selling? Scramble! ..and others. Perfect, we know he's always wrong so let's buy and move the price in the other direction.
This is the definition of the market.
Price
- It's not the number of traders who decides the price, it's the account size.
The point
- "Price will be moving because of imbalances between buy and sell orders, coming from a lot of participants who doesn't know each other."
Wrong! Just because we don't know them it doesn't mean they don't know "us". Not us as retail traders but the hedge funds. Deutsche Bank said they have 800 hedge funds as clients, so they know all of them and they know what is their position. Also other exchanges are selling their customer order flow which is exactly that. Buying information on who's buying or selling and how much.
Accept and act
- "Since we do not know what all the other participants will be doing: once entered the trade, anything can happen"
It's your job as a trader to know what others will do after you enter the trade because they'll decide your p/l. Not knowing that is called roullete.
Be balanced
- Wishful thinking is an enemy to everyone.
Conclusions
- I liked the article because it shows there is a moment in time when you have to realize traders are in cage and to become successful you have to escape.
