is this how to make money?

Quote from Susannah:

I think of it more like a quick liquidity test. Testing where the bottom or the top is going to be for the next quick move. Trade through all the little orders for a second to see where the big money is parked. I could be way off, but that's what makes sense to me.

That's as good as an explanation as any, but where the orders appear on the DOM and the length of time they appear it reminds me of a bluff in poker, or a signal. I'm talking 2000 or 3000 contracts appearing for less than 5 seconds sitting on one price.
 
Quote from HolyGrail:

That's as good as an explanation as any, but where the orders appear on the DOM and the length of time they appear it reminds me of a bluff in poker, or a signal. I'm talking 2000 or 3000 contracts appearing for less than 5 seconds sitting on one price.
It's quite possible that what are suggesting can move the market on low volume, trendless days ... but when the markets are making a big run (Friday's S&P, Oil, etc.) they're meaningless.
 
Whatever it is, I do agree it's a tell. Seems to happen a lot on the individual stocks, too. Probably would be worth writing some code to look for that kind of thing. My husband has been itching to help me trade some, maybe I'll get him working on that. What a strang "honey do" list I have :p
 
I don't know, but I just picture two big hedgefunds getting together on a daily basis and saying ok, when you see one order for 3000 contracts appearing on the dom for 5 seconds we are going long, and if you see 2000 we are going short.
 
Quote from thelost:


also if i have a friend working at a hedge funds and i make a deal with him he will tell me wat stocks he is buying the night before so i will go to prop and leverage huge on that stocks???

then we split 50/50 later???? is that illegal??????????

LOL at the fact that this kid posted this on a public message board.

If your friend is about as smart as you, I feel sorry for the investors of that hedge fund.
 
Quote from thelost:

ok i have a theory.

people learn technical analysis and stuff then guys with money they make patterns appear in the charts by buying and selling...

like they know if they push the price up it will maek a pattern.... so they make the pattern then others buy it and meanwhile the original dude sells to the guys taking the signal.......

is this how people make money????????????????

Just because you are paranoid, doesn't mean they're not out to get you . . .
 
Quote from illiquid:

Just because you are paranoid, doesn't mean they're not out to get you . . .

That has always been one of my favorite quotes of all time.:D
 
Considering how little regulation there is in the hedge fund industry, particurarly the offshore ones (Cayman Islands), they can get away with a lot of manipulation.

Anyone who thinks that hedge funds do not collaborate with one another is just being totally ignorant.
 
Quote from ggoyal:

if it's a single stock, you can easily create a pattern yourself. you need a lot of money to trade for that and the stock should not be extremely heavily traded, like apple or washington mutual. Medium to low volume, you can create a pattern and hope others will buy into it.

I've heard it called "painting the chart". If one could paint a pattern like a cup and handle, that would be true artistry!

The real painting is done during slow times like lunch when traders attempt to lure in other traders with false breakouts and breakdowns.
 
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