Wednesday, December 27, 2017

Correct me if I`m wrong

After winning the game of trading on the futures market (quite fast I would say, I`m new here), as I did on FX, all that is left to do is to think about the real scenario where real cash are involved. In which case one can not help thinking at the (very unfortunate I would say) other side that takes your trades hoping they will win and you will lose. Since I do not know what`s behind the scenes, nor do I care for that matter, I`m able to win a game that is supposed to be fair or at least on the surface pretend for world eyes to be fair, I have to assume that arithmetic's are real and the market really involves cash to move, cash that can be used to buy a house for example  (well, thousands of them but that is not the point here). So, in this case, how much cash is required to move the market? On a short term, not that much, and the market can be easily manipulated with a few millions however unless those millions are smarter than you those millions are lost. Why? Well, with Crude Oil for example the depth of market shows on average lets say 50 contracts/tick. That would be 5000 contracts for 100 ticks and 5000K to drive the market lets say one day (assuming nobody else is playing to provide more liquidity to rise your cost), not that much you would think. Trouble with driving the market is that unless you drive it in the right direction those 5 millions are lost because on a longer term the market will do what is supposed to do irrespective of the will of one or other particular group with enough cash to be able to drive and manipulate the short term price. So I would say that as a trader, you can be quite safe as long as you trade well no matter how small you are. Are 25K enough to play if the market can be manipulated against you? Absolutely, just be better than them for enough time and their cash are history and possible in your and other small trader`s pocket. That is why this game is beautiful....I`m not sure how things are with FX because in there I`m not even sure there are real money involved in moving the price so the theory might not apply there which kind of explains some things but then again I`m just someone who does not have a clue on how things work behind the scenes and as I said not care very much either. Anyway, I have an invitation open, if you got 250 mil and think ur wiser I invite you to trade against my demo meaning that when I`m selling, for example, you should use your cash to buy and drive the market up and of course keep it there whatever it takes otherwise I win (again and again) :))))), do it for enough time and I can quite assure you that soon you will find out how I feel trading on demo without cash. Of course the purpose of an exchange is to provide anonymity for all players and the above text is part of the fun after the trading day but nevertheless it is true. True in general I mean for any trader that is good enough.       

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