Does anybody know of a trading related book written by Nasdaq market makers or NYSE specialists? I have read many books written by pro or amateur traders. They all seem to be saying look at the chart, when it is trending, by the pullback, or buy the 38/50/62 fib retracement, etc.. It will be really interesting to know how do market makers/specialists make their living. They have access to order flow. They can work large orders sent to them. Do they bother looking at a stock chart at all? How are they able to trade against all of us pro/amateur traders to make a living? Or is this secret of their trades (like magicians')?
Market makers and specialists have the added benefit of seeing order flow. They also have huge amounts of funds to tap into if something goes awry in the market. So, trading is a different ballgame and would not be applicable to a retail trader.
"The Market Maker's Edge" by Josh Lukeman It's been a long time since I read it. Meaning I can't say whether I would recommend it or not. http://www.elitetrader.com/bo/index.cfm?action=view&B_ID=12&CatID=1
Yes, this is great book. I took it from a library, but after reading it decided to buy it, I still refer to it often.
======================= Same here; except its a worthwhile read. I am again re-reading the Jack Schwager top trader interviews, market makers,turtles..........
Thank you for all your responses. I gotta get a copy of this book to read! If you know of any other books by market makers too please let me know.