Why DOM is Deceiving

Discussion in 'Index Futures' started by increasenow, Aug 28, 2007.

  1. there is still the point that one brought up...that "many" of the DOM orders could be fake...that would lead to serious mis-guidings...
     
    #11     Aug 28, 2007
  2. If you believe in the DOM, you will be "killed"

    Raiders and flippers abound in all markets post orders deliberately in order to rake in the orders and temporarily push or stack the price action enough for them to flip the order have it execute and watch the snapback for a quick easy scalp

    Beware the DOM, the account "killer"
     
    #12     Aug 28, 2007
  3. WOW!
     
    #13     Aug 28, 2007
  4. gnome

    gnome

    If that's true, maybe we should not give any weight to the DOM. We traded for years without it, you know.
     
    #14     Aug 28, 2007
  5. syrre

    syrre

    :D


    "Successful asset management: where the will to succeed, intuition and mastery of the latest trading technologies coincide."

    - Paul Rotter
     
    #15     Aug 28, 2007
  6. Two kinds of posts here, the clueless, and the insane
     
    #16     Aug 28, 2007
  7. Care to add any substance to your comments there guy?
     
    #17     Aug 28, 2007
  8. To add to my post, you should pay much more attention to reading TAPE, ie time and sales which provides valid information with regard to what IS not what COULD BE.. but believe me when I tell you, you wont read or glean any useful information untill you watch it constantly for weeks to months and become proficient in it.

    Of far more importance than anything else it is YOU who are the focus of the markets. The markets dont like or dislike you they are just there and the markets exist to move monmey between accounts.

    If you set stops too short, keep modifying your stop loss, feel that the market is against you or that you are in a fight with other people, or perhaps want revenge for the losses youve sufered... or you still take impulse sucker trades without any notion of the value of your entry/exit and total possible loss IN ADVANCE let me assure you you will oh yes YOU WILL LOSE!!!!

    All the above issues are unresolved problems that YOU have to confront. The best way to deal with that is to have a written plan and EXECUTE EVERY signal to the letter like a machine..after which you can then test your results after 3-5- days and only then perhaps modify your apporach. If you arnt doint these things then I assure you you will lose!!!! PERIOD because you have no means of measurement, no means of control and your lack of discipline will kill your account.

    You either approach the markets like a machine who measures plans and executes without emotion inc euphoria or you will LOSE!! It takes around 3 weeks minimum to learn this habit of discipline to trade as well as stopping completely any arbitrary entries that send your money to disciplined trader accounts until it begins to become ingrained in your Psych. Most traders dont get this far before they blow out because they thought the markets represented freedom to them but the paradox is they require diligence, discipline and a scientific approach which by the way can be helped greatly by using automated platforms if you know yourself to be weak at sticking to your executions and end up chasing the market...another sucker trade. Are we all getting the message? Traders are not born they are made..and those willing to commit to discipline during the learning phase will most likely end up winners.

    Most people simply dont want to face that level of discipline thats why they lose by impulse trades...sucker trades that have no feedback value whatsoever .

    As such this discussion about the DOM is a red Herring and really is strictly for accomplished traders... you/we have bigger issues to confront and those are first a commitment to be aware of yourself and how and why you cut corners. You must always know how much you will lose before the trade begins... this also helps to keep emotion out of the market.

    read Trading in the Zone by Mark Douglas and forget for now any intense study of the markets.. more knowledge of the markets is NOT what will make you successful.. Knowing yourself and why you do things and then committing to discipline is the path to success...

    commit to consistency... this is what I have learned from my bitter experience to date..please please get this message.
     
    #18     Aug 29, 2007
  9. Thanks for the lecture, but if Paul Rotter, says you've gotta understand the book, then I would sit up and listen.

    For anybody that's interested, the thread on ACV is useful reading:

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=68098&highlight=acv


     
    #19     Aug 29, 2007
  10. RedDuke

    RedDuke

    Nicely said. However, none of this will help if a trader does not have an edge. Discipline is important, but not the most important factor, otherwise casinos would not exist. No discipline or money management will help you to win in roulette on the long run, the house simply has the edge.

    Find the edge, then apply discipline/mm to use it properly.

    DOM is not deceiving. Go to Spyder’s Futures thread and read the way he explained DOM can be used.

    Regards,
    redduke
     
    #20     Aug 29, 2007