how are prop traders seeing this market?

T

thisguy

How's everyone seeing this market?

Someone in the office says the third FED injection may be due to some bank in real trouble. WAMU with all it's residential mortgage loans on its books?

Any ideas?
 
The "traders" vs. the "opinionated directional types seem to be enjoying the VIX going from 12 to 30...we have set records for one day gains in the Opening Only strategy, and the hedged guys are doing "ok" (yes, just "ok" we prefer "predictability" to "volatility" for the most part)....Straight directional opinions have cost a couple a bunch of money, but overall the whole trader pool has been doing well.

MOC imbalance plays have been really good as well.

We all have to adapt to the market, it certainly won't adapt to what we're "hoping" or "thinking" LOL.

All the best,

Don
 
Do prop traders get nervous when they see huge drops? Even if they are enjoying the volatility, don't they get nervous about their fellow traders getting "stuck" in positions?
 
Quote from illiquid:

Do prop traders get nervous when they see huge drops? Even if they are enjoying the volatility, don't they get nervous about their fellow traders getting "stuck" in positions?
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I think they're more focused on their own trading, especially since each trader is totally independent (with a few exceptions of trading groups), at least here .

Don
 
"....Straight directional opinions have cost a couple a bunch of money, "

How can one lose a bunch of money directionally? Have they not heard of stops? Do you need someone to come in and show them how to trade this market? I would be glad to, making more money in the last two weeks than in months. So many gaps and momentum movements it's like taking candy from a baby.

:):):):)
 
Quote from hazardfish:

"....Straight directional opinions have cost a couple a bunch of money, "

How can one lose a bunch of money directionally? Have they not heard of stops? Do you need someone to come in and show them how to trade this market? I would be glad to, making more money in the last two weeks than in months. So many gaps and momentum movements it's like taking candy from a baby.

:):):):)
More...

LOL, yep...stops can work, either hard stops or mental stops...but when you get stopped out, pick a new direction, get stopped out again, etc. etc. with some of these moves, it can start to add up, LOL.

And, another note, stops are only good if you either leave them in or respond to them.... cancelling the stops every time, which I see from time to time, doesn't seem to work to well (whoda thought, LOL).

And, yes, we have had some guys making good money, taking some cash from directional moves...not being too greedy, happy to take profits.

Don
 
Best 3 weeks of action since the internet boom/bust for traders with rules and disiplane to keep each trade in line with the next. There is even so much opportunity that you can hide or make up for mistakes very easily if one does occur.

Both stock and futures traders that I have a relationship with are having record months and most of this is dirrectional but with proven systems and rules they follow.

The adjustments that need to be made is to lower your positions size and increase your stops as basic noise is now 2-3 times more.

A few guys I know have cancelled vacation to stay around and clean up while the environmant is so juicy....

Trade well and keep your head.
 
I thought you would like that response Don!) I find for some reason some traders make money in this kind of market, and the ones that do, rake it in,and others either seem to struggle or lose. Trends reverse so quickly, one has to be quick to take gains/losses.

This market is like one Tsunami after another, big wave comes in, guys make some really fast money, only to see the wave retreat and take them with it. Guys take their stop only to realize the stock is quickly moving back in their original direciton. Unreal volume and volatility.
 
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