How do you recover from a £25,000 loss....

[dc2000]

FWIW the reason why the market seems to reverse just after taking stops out is simple thats where the large buyers and sellers are. Retail traders get in to the market then put stops and limits etc etc large buyers let the market come to them and only when the price is right do they enter. they are not trying to second guess the market, trading is a waiting game first and foremost

 

[new_trader]

Hi Joe, short selling means taking a position to the downside with a need to cover even lower to make a profit.

If you are going to split hairs, short selling means selling something you don't own. In the case of a stock it means you must borrow it first (usually from your broker) before you can sell it. In the case of a Futures contract on a commodity it is technically a naked short if you don't ever intend to deliver. This is why Governments can ban short selling of banking stocks, they can't stop anyone selling something they rightfully own but they can prevent people from lending it for sale or naked short selling.

 

[wallstreetwarrior87]

If you are going to split hairs, short selling means selling something you don't own. In the case of a stock it means you must borrow it first (usually from your broker) before you can sell it. In the case of a Futures contract on a commodity it is technically a naked short if you don't ever intend to deliver. This is why Governments can ban short selling of banking stocks, they can't stop anyone selling something they rightfully own but they can prevent people from lending it for sale or naked short selling.

You are quite right.

What I was getting at was that the outcomes will be different depending on the type of trade taken.

 

[BeginnerJoe]

If your example means that "they" already hold long and are there for dumping stock previously bought at lower prices , then why would they do this if no advantage is being obtained.

We are dealing with the most basics of market rapage. It doesn't matter how much the large institution paid for their stock. The important point is they have the stock. If they have the stock they then can sell it, short sell ban or no short sell ban. When they sell it, they can be sure they can buy back from the noobs at cheaper prices when the noobie stops are hit. The large institution is not selling their holding but maintaining their position at cheaper prices every time they rape a noob senseless. This happens in stocks, in forex, and in anything else you care to imagine.

 

[scose-no-doubt]

Of course it does joe. What else would they do all day? Provide liquidity and execute thousands of client orders or something?

 

[BeginnerJoe]

Of course it does joe. What else would they do all day? Provide liquidity and execute thousands of client orders or something?

You mean, like, they take orders from casino goer joe's and help set up their stops first before whacking them and relieve them of their money ?

 

[brettus]

You mean, like, they take orders from casino goer joe's and help set up their stops first before whacking them and relieve them of their money ?

They do do this but it has to have good risk reward, whats the point in selling 50million for 5million liquidity. If the stop is like 500 million and you can sell 200million to get there then it's well worth while. I know banks do this in forex trading, but they don't intentionally take out the little guys. Liquidity can build up from retail but it's usually very small.

 

[BeginnerJoe]

I know banks do this in forex trading, but they don't intentionally take out the little guys.

Then we have to disagree. I believe they move prices even for peanuts because the cost of the move is close to nothing. Most casino joe's don't have 200 pip stops and make easy morsels for the institutions.

 

[scose-no-doubt]

Then we have to disagree. I believe they move prices even for peanuts because the cost of the move is close to nothing. Most casino joe's don't have 200 pip stops and make easy morsels for the institutions.

It costs nothing to move the FX market? I'm sure the Japanese may be interested in your methods

 

[brettus]

Then we have to disagree. I believe they move prices even for peanuts because the cost of the move is close to nothing. Most casino joe's don't have 200 pip stops and make easy morsels for the institutions.

How is this cost close to nothing? What if two banks have stops, both equal amounts and but either side of the market. One goes for their stop and so does the other, what happens then?

 

[BeginnerJoe]

It costs nothing to move the FX market? I'm sure the Japanese may be interested in your methods

Tell the japanese to open a market making shop then they wont have to pay themselves a commission to move the price a couple of hundred pips. That should be enough to knock out most casino going joe's and make some cash.

 

[BeginnerJoe]

How is this cost close to nothing? What if two banks have stops, both equal amounts and but either side of the market. One goes for their stop and so does the other, what happens then?

The bigger bank, in terms of order size, wins. Big means win. Small, like plankton, means lose.

 

[brettus]

How is this cost close to nothing? What if two banks have stops, both equal amounts and but either side of the market. One goes for their stop and so does the other, what happens then?

As i stated they are both equal amounts.

 

[BeginnerJoe]

If 2 banks have a big fight, then all the roulette playing joe's in both long and short directions will be destroyed by the resulting whipsaw. But generally banks have gentlement agreements amongst themselves to not fight with each other since their goal is to get at the casino going joe's money rather than wounding each other.

 

[DionysusToast]

Volume can be faked. Market makers buy and sell without paying a cost. If they so choose, they can give you volume. In any case, like I said, the casino going joe's congregate at specific places as indicated by your volume.

Well, there is actually a law against this.

Not only that, it makes you blind too.

 

[Bint_Crusher]

This has now degenerated into a debate about pretty well shag all. The original poster lost a lot of money because he was a ****, pure and simple. Nothing ot do with the banks, appendage hoovers enter and leave the markets every day with sob stories to match, we cannot even speculate as to the behind the scenes causes, just come to the conclusion that those expecting to make "WEALTH" are delusioned and will pass their money to the rest of us who trade.
Mfigure is a ****, will continue to be a **** and to answer his original question from Rudyard Kipling:
Just roll on your rifle and blow out your brains
And go to your god like a SOLDIER

 

[dc2000]

If 2 banks have a big fight, then all the roulette playing joe's in both long and short directions will be destroyed by the resulting whipsaw. But generally banks have gentlement agreements amongst themselves to not fight with each other since their goal is to get at the casino going joe's money rather than wounding each other.

one word "Barings"
Two words "Lehman Brothers" "Societie Generale"


Its dog eat dog

 

[timsk]

Two words "Lehman Brothers" "Societie Generale"

By chance dc2k, are you using the hare's method of adding 2+2?
:cheesy:

 

[dc2000]

By chance dc2k, are you using the hare's method of adding 2+2?
:cheesy:

someone normally gives me an "and" wiv me grandmar

 

[Successful_Trader]

I agree... it's always the bigger bank. The bigger, the better, as they say.