Reasons for Why you need multiple accounts, multiple IPs, and multiple brokers

Discussion in 'Order Execution' started by traderum, Dec 6, 2009.

  1. Benign

    Benign

    The reason why you feel your order has an impact is because you commit the same common mistakes most newbie traders do.

    Market is about general psychology. It's time to sell when the public is too eager to buy. It's time to buy when the public is too panic to sell.

    That's why you seem to see the price always move against you after you place your orders, and why you feel "market makers" seem to be watching behind you.

    In reality your orders aren't sent to the real markets but it simulates well how a newbie would trap into common market traps.

    Do you believe capital in demo account is real money? Do you believe IB provides funds to you to trade? Come on! They are just virtual money!! Even if you lose all of the capital you can reset it easily.

    Yes it's so realistic because human psychology is not a random thing. Most people are stupid and keep making the same mistakes. That's why it's said about 95% lose. Only about 5% win.

    Did you read the description before you download the demo?

    The Trader Workstation (TWS) is our full-featured java-based trading and order entry application. The TWS demo mirrors the actual TWS in both form and function except market data is simulated based on the previous week's ticks and orders are not actually executed and cleared. However, TWS functionality will be identical to the actual application.

    Read again if you don't understand.

    ET is not a good place to master trading. Chatting here won't help you become a trader. Do some serious homework. Buy some books to start with. Learn more about how market really works.

    Good luck. :D
     
    #61     Dec 19, 2009
  2. #62     Dec 20, 2009
  3. t1ck3r

    t1ck3r

    Option market makers are spread across several exchanges. Seperate firms have primary market maker responsibilities at these exchanges. This makes it tough to believe there's a conspiracy to identify buyers/sellers they interact with. They only can see who the representing clearing firm is upon getting an order into the electronic book. This is a large pool of potential clients. Now if an order shows up in the book that narrows a spread and rest long enough it will be identified as a potential real buyer or seller, this is where the active trader world will play. They either jump ahead of you narrowing the spread even more or hits|lifts your order legging the risk to another call|put up or down or in a back month potentially locking in a profit. Also as you buy or sell an option from the market maker they will naturally move the stock or other options to lay off their risk.
    ...greg
     
    #63     Jan 7, 2010
  4. When you are trading your biggest enemy is your own self. Not your fear or greed as many fools believe. Both fear and greed can be good or bad depending on circumstances. Your biggest enemy is your hidden desire to surrender. This is what you learn all your life, to surrender. Surrender to tempetions, like good food, women or men, nice cars. When you learn not to surrender but to fight to death then you can stay alive and win. The rest, like MMs and manipulators are just useless details. This is the market and you should know that everyone wants to profit at your expense. Do not surrender when they offer to you a candy bar. Don't be a little boy. Take them to the cleaners like a gold digger.
     
    #64     Jan 7, 2010