Gold
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.....and the "smart traders" make up 0.0023% of total traders? so their impact is negligible.
interesting you used to program bots. you and i have a lot more to talk about now, ive been trying to understand the logarithm better but it all appears to be eating its own tail and trading in "ghost" mode.
interesting you used to program bots. you and i have a lot more to talk about now, ive been trying to understand the logarithm better but it all appears to be eating its own tail and trading in "ghost" mode.
Sorry to see that SF, nasty business, quite a few threads on MF Global as well. Getting rather nerve racking dealing with any leveraged products atm isn't it.
I read a report about a fund in US closing because she no longer trusts the exchange to honour its rules
Tough times to be retired in isn't it
It really is. Anyone who says they are "safely invested in dividend paying stocks" is naive. That may work if you have a barrow load of BHP, RIO, TLS and the banks. Sadly I only have a bucketful.Tough times to be retired in isn't it
I really do try not to preach about precious metals but anyone who looks beyond our borders to try to work out what's happening should enjoy this from Jim Sinclair. I'm the first to admit Jim's timing has been terrible BTW.
I especially love his final statement. Something like: The memory of traders is like that of a goldfish. Every time they swim round the bowl they think it is a new place.
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/15_Jim_Sinclair.html
I especially love his final statement. Something like: The memory of traders is like that of a goldfish. Every time they swim round the bowl they think it is a new place.
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/12/15_Jim_Sinclair.html
73.5% of stats are made up.
Algorithmic trading accounts for a massive percentage of trades on the NYSE (80%?). So much so that the average time of a position being held is in the minutes, not days or weeks as you would suspect.
I agree with all your sentiments. Half the benefit for short term traders is the low fees for volume. Which keeps undercapitalised newbies out unless they are truely profitable. Most people don't realise that, and that's the way the big fish like it.
As for long term traders, the most profitable (according to several research papers), are insiders, particularly those at the very top (but of course there's no insider trading is there!?). Even better is U.S. politicians, particularly those in defense & infrastructure, who'd have thunk it.
73.5% of stats are made up.
Algorithmic trading accounts for a massive percentage of trades on the NYSE (80%?). So much so that the average time of a position being held is in the minutes, not days or weeks as you would suspect.
i would believe it, ive been a student of the logarithms, trying to understand its momentum but when i started these trades were days long, now the bots process data in 60sec blocks and trade accordingly.
Try micro seconds.
Sure, the thing is there are so many ways that bots are used. But the biggest volume is in two forms. When big funds place orders sometimes they take days to fill, they program it into several bots with several brokers & randomise the amounts & times, that's to trick anyone who wants to front run their bids, (including their own traders).
The other type is simply market makers on many exchanges who's job it is to take the other side of your trade & add liquidity. They make money because you get super low fees (in the U.S.) if you only place limit orders, because you are adding liquidity. They are by law the only ones allowed place both long & short orders in the queue, another big advantage. But I'm getting off topic I guess.
Right, I had working systems that used 10sec data. Other people had systems that ignored the sales & analysed the order book. Another very talented trader I knew was analysing multiple news feeds for keywords. After big news his systems would place trades before the screen traders could, & then sell his positions to those traders for a profit. That was 6 or 7 years ago.
What stuff are interested in Aaron? Trading yourself?
The Yanks have always been hypocrites. WHen it comes to foreign policy they knock it out the park.
Not meaning to be picky & perhaps it is just your sense of humor being exercised, but there is a distinct difference between a logarithm and an algorithm, just in case anyone else is reading.
The "bots" are programs containing algorithms (a coded problem solving process) that exploit many types of market phenomenon and even create a few of their own.
As for the recent Gold price movements, it is simply indicative of the risk on/off nature of the markets & the huge problems festering with the sovereign debt issues. Yes we have seen a significant correction, but the long term trend remains bullish with extremely strong fundamentals indicating further upwards movements in the mid-long term. IMHO, anyone "trading" the PMs is playing with fire as it is a completely controlled (Ie. rigged) market. Averaging into a physical position however, remains sound.
I remain bullish for the PMs but would caution newcomers to be vigilant of the large volatility in the commodities complex. Case in point: The current dollar short-squeeze (USDX going up) forces investors to sell liquid assets (ie. gold) to cover position. Gold goes down, everyone rants about a top, and strong hands cover the weak. However, the fundamentals have not changed.
If the USDX gets too high, the Fed has to step in as the US economy comes under threat of "pricing itself out of the markets" due to the high export costs. This slows down the big machine, drags on growth, puts upward pressure on unemployment etc... So the Fed implements QE, brings the USDX back under control & guess what.... Gold goes up.
Sound familiar yet?If you believe the Fed will need to print, print, print, as they have been doing to save themselves & now to save the EU, then you are also inadvertently a gold bull....
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