Heard this for years, but have experienced it too mind-bendingly often. Mkt is slow, your in a trade, price gets close to your target, than fades...then slowly goes against you...you get out at m/l even money, then not 20 seconds later and I mean NOT 20 SECONDS LATER, it rallies back towards your target. Nothing to do with reversions, retracements, momentum; it's the timing of the move; literally the moment I get out with a mini-spurt of volume. So, should I: A.) Immediately re-enter after closing out? B.) Have a beer with my anonymous new friend who's responsible for this? C.) Ponder the effects of paranoia apparent in option B? D.) Brush it aside as the price to pay to play, as I always have until now. It drives me nuts, I tell ya, nuts. Il Principe
I totally hear you. It basically reinforces the idea that the banks are not Market Making to give away money. They know where most people have their stops.. and they run them... I just don't know how they know what they know.
I thought I had the gold medal in this happening. It's just sods law. Usually it's difficult to re-enter on this smaller moves, but I do if I get any form of signal with a tight stop. I've learned to just brush it aside now and take it on the chin. There are enough other times when it hits my target and immediately retraces to compensate. It's like football, referee decisions all balance out by the end of the season!!
LEVEL THREE QUOTE! you only can recieve L3 if you are a brokerage firm-you also get to trade off or behind the market in "darkpool" with very powerful trading software that can run the bid ask one way or another-"buy a million shares without moving price" try to do that yourself and see what happens-no shit its all rigged!!!!! but if one knows how they do what they do and why they do what they do you have a better chance of skimming a living by riding coattails-no level three for us
and simply put-they have control of supply and demand[MM] even though MKT[share price] is supposed to be supply demand driven-how can price be true if supply/demand is easily manipulated-same folks that clear the stock mkt orders are the same people who control the fed and world banking system-its all true and the facts exist if you choose to dig deep enough-this seems to be a sucker rally
If you're swing or position trading, buy 2-3 month options instead. You have a price-stop (you only lose the amount debited) and a time-stop (expiry). No whipsaws except maybe when it expires and underlying hits its target