Buying vs. Selling Volumes

[skyQuake]

Re: Buying vs Selling Volumes

So
Explain this.
90% trade by looking at DOM
That means 90% of trades dont appear in DOM
They just fly in from Cyberspace.
If 90% of volume comes outside of DOM
how then can you explain an edge.

Theres also arb bots and spoofers who will sit in the depth. Also, a lot of scalpers place exits in the market but enter from cyberspace..
Just look at how thin SPI is

Your not placing your order in DOM
The large traders if they did place their orders in DOM wouldnt be telegraphing their intention.

Sure there are successful traders scalping but there are many many disasters as well.

I'm not against it just not into Psycho Trading.

They spoof and hit spoofs and occassionally, fill insto orders too!

 

[tech/a]

Re: Buying vs Selling Volumes

Yeh got it.
Always have.
Your reading increases in buy sell volume as it hits market you just get in the right side early enough to buy and sell size in a few ticks.

Volatility scalpers paradise.
Flat scalpers death.

 

[Trembling Hand]

Re: Buying vs Selling Volumes

Yeh got it.
Always have.
Your reading increases in buy sell volume as it hits market you just get in the right side early enough to buy and sell size in a few ticks.

Or my number 1 top hit on the HSI wait for the 15 -20 tick push up and then stand in front of it. Snap back. let the panic players pay you 15 - 20 tick profit. Thats a 10 sec trade max.

You cannot feel that looking at a chart as you cannot see who is hitting who. Not enough detail.

 

[Broadway]

Re: Buying vs Selling Volumes

Or my number 1 top hit on the HSI wait for the 15 -20 tick push up and then stand in front of it. Snap back. let the panic players pay you 15 - 20 tick profit. Thats a 10 sec trade max.

You cannot feel that looking at a chart as you cannot see who is hitting who. Not enough detail.

Must be scary when it absorbs your contracts and then just keeps going against you. I guess you dont worry too much because you get more winners than losers. Your stop is about 10 ticks on this play?

btw, I agree we head up in the next 24-48hrs, tonnes of volume support in ES and europe. How often do you get a bullish night after a straight up kospi day? I was pissed that the spi didnt ride the kospi wave today, great gdp number and it acts like it was thrown a poisoned bone. Spat it right out.
:angry:

 

[Tradesurfer]

Re: Buying vs Selling Volumes

Something I think thats somewhat simple but should be added to this thread especially because it is located in the beginner lounge.

"More buyers than sellers"

"Volume of 100 means that a buyer and seller exchanged 100 shares"

"Buyers and sellers have to be equal"

In reverse order #3, and #2- that is correct.

#1 is also correct and why stocks move up or down in the simplest form. But with an explanation.

Someone mentioned that if 100 apples were sold at a farm and the farmer was the seller, then whoever bought them would be the buyer.

There are two parties period. If No One wants to buy, no sale even though in theory the farmer has already placed a limit order to sell his apples.

But the variable with trading is that market makers or specialist put up their own capital and are a 3rd person in the room sort of speak.

So if the person walks into the farm and wants to buy apples but the farmer declines, the market maker would step in and take the other side.

The market makers and specialist set the price largely based on supply and demand. In other words, they try and find a price where buyers and sellers will want to meet and trade.

So in the "more buyers than sellers" comment- yes you can have more buyers than sellers where traders, funds, whoever want to buy but no one is selling, the 3rd party steps in to take the other side of the trade. Since no one is selling and they are taking the risk, they will raise prices to whatever level in order for buyers and sellers to meet again.

Don't want to turn this comment into a debate about market makers etc- but since this is in the beginners lounge wanted to make that distinction.

Hope that helps a bit. Rather than give a complex exchange process description tried to keep it simple