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LOL I am keenly aware of PFOF when I am trading feeling naked in public.

Schwab sells customers order flow info to offset zero commission for online equity trading. It’s not really free. We pay with our orders being visible to MMers, etc. The real test has to be trading in real $. There’s no other way around it.

I thought you had some edge of capturing big moves/trends producing a few big wins amidst a sea of small losses. If your profit/loss sizes are similar in your post above I think you don’t have an edge.

Guess SimpleMeLike hasn’t had a big loss in his/her trading. That’s both a bless and a curse. Renaissance Technologies CEO said they put a huge effort on controlling risk. That tells you something about trading/investing...

Market becoming more automated means more and more algo/program trading? Less human discretionary trading?

@ironchef, If your winning strategy is truly a few big winners you may have a chance in real trading. The strategy can overcome slippages, etc. under real market conditions, as long as you can stick to your strategy and control your emotions when real money is involved. One major human...

The biggest issue of paper trading is no emotion involved with real money. Emotional problems and the mental capital drain in real trading takes a huge toll on human mind and body, unless it’s algo/automated trading. I am actually more anxious with winning trades. One big win I am...

Paper trades just don’t count, seriously. My advice is don’t spend more time on it. If you really want to try it, reduce the paper trade size by 10x and use real money to do real trades. Then we can look at the data.

I think you really need to open your mind. Swimming coaches don’t usually win medals, for example. Many trading losers have good lessons from which everyone can learn. Don’t you learn from your own mistakes even though you are a loser yourself? So should we listen to your lessons before you...

Trading is like any performance sport. What do you expect if a newbie jumps in an NBA basketball game? I admit that I myself thought it was easy and blindly jumped in about 10 years ago. Still learning today.

It looks like the issues discussed here are mostly in the FX market. What about the equity market? I’d assume it’s very difficult to do the same things in the equity market.

Market makers are not supposed to take sides, such minimal risk. They make money by charging the bud ask spread. With minimal risk, they are also not supposed to go bankrupt or make huge sums of money.

For bracket orders do you have to enter both Stop and Profit? I mostly only enter Profit, and leave the Stop field empty and control the stop loss manually. Sometimes such half bracket orders will go through but other times the orders won’t even get accepted. Anyone knows why?

My only tool for identifying trend reversal is patience and waiting. You don’t really know until afterwards. It’s better to be on the right side of V. If the reversal trend has not been exhausted your probability of winning is very high, whereas the R/R depends on when you realize the reversal...

Agree that liquid and high volume markets cannot be easily manipulated. That’s why I only trade equities with at least 10 million shares volume/day and no stocks less than $10/share. With that said, the human psychology and market actions (tricks & traps) are still present in all markets to...

It is definitely eye opening for me. There are many more videos in the series from different people. I am sure the market manipulation was more prevalent in the past before electronic trading (ECN) became mainstream in the 2000s...

After a while you will figure out what those market makers are doing, particularly during the morning big swings.

With a good laugh here and there. LOL

Very helpful to see the other side on your trades.