Comments on: Leaning on Large Bids – A dangerous game for human traders /2012/08/27/leaning-on-large-bids-a-dangerous-game-for-human-traders/ Premarket Trading Analysis Wed, 10 Oct 2012 14:10:57 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Dennis /2012/08/27/leaning-on-large-bids-a-dangerous-game-for-human-traders/#comment-3025 Dennis Thu, 06 Sep 2012 23:10:30 +0000 /?p=1490#comment-3025 This "leaning" strategy worked well for a number of years, as day traders would employ this strategy to limit their risk. But this strategy no longer works, at least not for human traders. The market moves way too quickly for humans to lean on any bid/offer. The end result is that traders playing this "leaning" strategy will lose money in the long run. This “leaning” strategy worked well for a number of years, as day traders would employ this strategy to limit their risk. But this strategy no longer works, at least not for human traders. The market moves way too quickly for humans to lean on any bid/offer. The end result is that traders playing this “leaning” strategy will lose money in the long run.

]]> By: Alejandro /2012/08/27/leaning-on-large-bids-a-dangerous-game-for-human-traders/#comment-3009 Alejandro Thu, 06 Sep 2012 13:10:31 +0000 /?p=1490#comment-3009 I believe that those that leaned on that bid had some wrong notions of market behaviour. From the start of my career as trader, I´ve been tought that BIG bids and offers, that do not step up/down aren´t "buyers or sellers" theyre there to be taken, the remainings of some big order etc. Manual trading or not, the fundamentals of the idea of buying ahead of such order (and it wasn´t a really big one for a stock as C) was wrong. IMHO I believe that those that leaned on that bid had some wrong notions of market behaviour. From the start of my career as trader, I´ve been tought that BIG bids and offers, that do not step up/down aren´t “buyers or sellers” theyre there to be taken, the remainings of some big order etc.
Manual trading or not, the fundamentals of the idea of buying ahead of such order (and it wasn´t a really big one for a stock as C) was wrong.

IMHO

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