Quote from jack hershey:
Trading indexes can be difficult for some.
the less myths that are used the better.
yes, Jack, let's cut the myths[\I]
The bottom line is where the conclusions are stated.
show us your bottom line, Jack[\i]
The large picture is that you must be very thoughtful and rational about how to make money trading.
are you thoughtful, rational?[\i]
Equities make up the cash indexes and the futures indexes serve the financial industry as insurance.
futures serve both hedgers and speculators.[\i]
I trade to make money as a parasite of both.
[are you a parasite of equities and indices or of speculators and hedgers?[\i]
I make money on stocks by gleaning prifits from the results of big money imbalancing the value of high quality equities. When high quality stocks are sold off for whatever reasons, their short term undervaluation presents a simple opportunity to make 10%or more in 3 to 4 days.
the thread is about scalping futures[\i]
For future indexes, that depend on the cash, I simply have to use timing to make what is offered, long or shot, from a neutral bias.
when is something offered? how can your bias be neutral?[\i]
The dependancy of the futures index on the cash index is not an important matter with respect to making money. Timing is what is important. And the other thing that is important is knowing how the futures indexes work.
why did you invent str and squ? do you know how the indices work?[\i]
It is unfortunate that futures index trading is largely a zero sum game at any moment in time. So my selfish interests are there and I do always find someone to take my trades.
unfortunate? anyone can find someone to take their trade, at any time[\i]
As we see the independent cash index moving, it is incumbant on futures index traders to trade the their dependent market effectively and efficiently. Luckily for retail traders, we can watch the pros and profit from their trading contraints, etc..
in the 2nd previous paragraph, the futures depend on the cash, yet here the cash is independent -- which is it?[\i]
Heavy scalpers, in particular, have constraints because of the size they chose to use.
We get to see how the futures index relates to the cash and, in particular how "control" of price occurs.
what constraints are those?[\i]
The view of the timing of what happens is simply a sequence of rapid events unfolding. The futures index I trade lags well behind the cash index and the futures index that I monitor to be able to trade my lagging index. All of this is a very fortunate circumstance for me.
what view is that? what sequence of rapid events? another pitch for YM leads ES?[\i]
It allows me to be positioned ahead of the heavy scalpers, the topic of this thread. I see them come into the game and they are controlled by the minority at all times. The minority mistakenly takes their trades as the minority continues to evaporate. The continuing near absense of traders facing the money coming into the market is what keeps the price tranding until the wall is reached that is too large to surmount.
back on topic? the minority controls the heavy scalpers, yet the minority is mistaken?[\i]
The heavy scalpers soon leave (see internal trend patterns and formations) and if high velocity scalpers, they trade the "box" of the pattern (See ACV).
does this make sense?[\i]
How the wall appears in a direct consequence of those who build the wall by having the capital on the sidelines to build it or by having the need to protect against greater losses as a result of their exposure. These people may be founding their views as BOTS or on the limits of the movement of the cash indexes or futures indexes. Who cares, while trading? The wall is just a place to take profits and put on another trade; it is not an internal pattern, it is simply the failure of tte trend to continue (the minority becomes the majority and throttles any more progress).
could you clarify this statement? 1st, what is the "wall;" 2nd, who builds the "wall?"
