- Trading floor used to give advantage of reading other traders or Tells.
- Can similar edge be gained in brokerage trading rooms where novice traders positions are displayed to all?
- What are the characteristics of "fadeable" traders ?
- I am surprised to find sometimes the positions of other traders overriding all indicators, TA patterns will give a clue to short term positions.
- If daytrading needs flash opinion on a stock what better market tell than an injured trader on the other side?
- This may sound cruel but the practice of deception is the nature of the market.
- Some characteristics of the trades I can fade are
- When there is a random stop on a losing trade
- Trader has taken a position rather than voicing his opinion
- Revege trading is visible
- Trader is trying to break even
- Cursing or exhorting the financial instrument
- Entering into trade to avoid regret
- Lowering stops on a losing trade
- Avoiding when the trader is strong or profiting in the trade
- Quick and random profit booking by the trader for emotional reasons
- Larger than normal size by the trader
- Timeframe of fadable trader should match your own
Can these observations of traders strength or weakness in a particular trade give an edge at least for entering the position and relying upon TA and indicators for managing and exiting the trades ? I had lot of anecdotal evidence of Stockbrokers fading the positions of their clients when they run their prop books.
Can the daytrader use this as a shortcut cutting across opinions , news, TA and Random noise?
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