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Old Aug 27, 2009 9:43am
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A quote from the Sage of Omaha springs to mind:

"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."

If you can read the market and identify the points where fear will manifest itself, and therefore the triggering of stops will occur on large scale, then you're well ahead of the curve. I only realised the importance of this when I looked back over hundreds of trades which were stopped out and saw how price reacted after - they showed a high tendency to breakout hard, yet I was only closing out losing positions rather than capitalising upon some of the most profitable market moves.

An excellent thread, I hope it doesn't descend into farce. I'm about done with 'the market is random because I can't profit from it' argument.

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Old Aug 27, 2009 10:07am
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I'm not sure that skfx has explicitly stated that these moves are engineered by insiders, although he might yet, but do these moves need to be manipulated for the opportunities to exist? I suggest that they aren't. If a market looks bullish, then appears to break-out above then there is a high probability that market participants will bundle in and all have their stops just below the breakout point, below the last low, or given space at some point below the last low. When these stops start getting triggered then the market goes into freefall, ceteris paribus.
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Old Sep 3, 2009 7:17am
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Nice work slimcat and shreem on the Jason Alan Jankovsky tip. Been doing a bit of digging and he seems to know what he's talking about on this subject. Ordered 'Art of the Trade - What I Learned (And Lost) Trading the Chicago Futures Market.' I'll have a read and post a review when I'm done.
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