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Market Makers or Online Casinos?

Creadores de mercado o casinos online - Market Makers or Online Casinos?“No more”, “Beat the Banker”.
This is what the dealers are yelling at the gaming tables of, much in vogue lately, online casinos.
Market makers are those that generate Broker, during the time when some markets are closed (at certain times, at night, on holidays or weekends), a fictional developments quote so we can continue doing avoiding trading devote to other social work as less important as caring for the family, go for a walk, meet friends, hygiene and personal care, … etc.
In the absence of market counterparties in transactions we make with the broker must think that we are effectively “betting against the broker.”
In this case, we can be guided by the proverb that says “who shared part and gets the best part.”
It is not unreasonable to think that the market maker broker “push” the quotation in the direction that suits you because it is “part” and also “shared”.
Such companies have the resources and suitably qualified personnel (mathematicians, economists … etc..) To devise the necessary algorithms for creating a fictitious market and price developments. Usually base their calculations on the evolution of other markets such as indexes that remain open, exchange rates of the currencies of different countries (forex), the evolution of the price of gold, oil … etc.
It’s easy to think that these companies will be very easy to “push” at a given time and in a “justified” the market price of its upward or downward, depending on the interests of the broker, generating huge profits for the company and great losses for traders. So that when there is a large backlog of open positions up, generate a downward trend and vice versa. Also, when there are many stops on the price point, the graph will be a large spike volatile and the head of the company renewed its yacht broker.

So, avoid these markets?
Instead, whenever we find a pattern, in one way or another we must analyze and study it carefully because it may be a gap through which to extract easy money.

What would be the strategy?
In this case we want to do the opposite of what most would in a context of clear and obvious signs.
If we believe that everyone buy long means that most of the money will go up, and the broker will wait for the right time to shout “wins the Banker” sweeping all open upward, and vice versa.
Maybe then we get in the truck broker in its accumulation of profits while the majority continue to suffer again and again their relentless sweeps.
… you know “the bank wins.”

Rafa.

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Where Vincent goes?

Where Vincent goes?

Let’s go with the questions:
– What is the reason why, at a certain time in which the price of an asset than a support or resistance very obvious and clear, the price behaves as expected?
– Is it true that there is an “invisible line” in the quote by which the price should break or bounce?
– Is there a plot by large investors and governments committed to be met assumptions of technical analysis to maintain balance in the universe?
– Who determines the location of that line and bounces off support why or why if the fall occurs through it?
– Why simple technique for a signal (support / resistance) very clear … prediction were right on many occasions?
– Why is reluctant to quote prices through round numbers composed? that is “to overcome the psychological barrier”? perhaps an asset itself knows how to act in these levels?
– Does the bag own intelligence?, Does psychology?
Well, incredibly, those most responsible for all this to happen we have them close by, … ourselves.
They are traders, speculators and investors who actively affect the evolution of the market price.
An analogy of this would be: If I go to a nightclub because I think that “few people will” … and then I learn that remained empty, I happened by chance? or what happened is that everyone thought the same as me? … and it came true!
So easy is the explanation. From time to think of something eventually becomes reality, both repeat a lie it becomes truth … where Vincent goes? where the people go.
And so many traders, investors, financial advisers, broker, economists, journalists, many automatic trading systems detecting support and resistance, many entities led by the most basic technical analysis patterns, many thinking, for example, that there is a clear signal that a quote that will fall, all sold. And to do it themselves will make his prediction come true.
Under this hypothesis should be very attentive to the basic techniques clearer signals (discarding the rest), as the vast majority will follow the basic premise of technical analysis, and given the support and resistance levels act accordingly, moving themselves the market.
Regardless of who does not have any logic, we should not miss the opportunity to jump on the bandwagon of money.
Although it is stupid to think that a price “bounce” for 3 ½ months ago he did the same “support line”, although it is a folly to believe that trading has its own life and rebounds to a point with a price “round”. All this will make it so thinks will happen most of the market, and this belief will create the fact. In the end we might think … maybe someone invented the technical analysis to give dynamism to the market?
What is clear is that such analysis besides not predict anything, rather it seems that induces something.

Rafa.