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  #123  
Old Aug 29, 2009 10:02pm
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Originally Posted by LasVahGoose View Post
To be honest, I don't think I've ever really thought about what the market maker is doing. I'll have to do some homework.


P.S. I just placed an order for the Trading & Exchanges book by Harris.
Its good to think about what the market maker is doing, but more importantly to me is to know what the sucker amateur retail trader is doing and take the other side of their trades at the right spots
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  #178  
Old Aug 30, 2009 11:06am
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Originally Posted by Ferrari View Post
This is not my understanding of price action, order books are driven from limit orders resting in the market. The iceberg effect discribes the way in which large orders are shifted into the market at the same price level, ie. the order is being broken into chunks. This is where most of us lack the proper knowledge of the market, the real money doesnt chase price around, they have their price levels where the have to execute their orders. I read in a study that two thirds of orders executed in the FX market are limit orders. Noice traders have missed...
There is a great read by a trader called 'deeman' over on another board that really describes how stock specialists work orders for big customers. The dynamics of the stock market are a bit different than FX, but it goes a long way to show why ranges form, why price after a breakout will retrace into the old range before continuing the trend or actually reforming the range.

http://www.elitetrader.com/vb/showth...p?postid=39614

http://www.elitetrader.com/vb/showth...&threadid=2267
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  #540  
Old Sep 8, 2009 5:21pm
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Originally Posted by jpat1023 View Post
Many traders use different methods to get into the market....
Jpat, love your posts. Please continue writing your novels
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