aurelius---thankyou,since 2007 i have not used the bid and ask nor have i set stop losses,central to all trades is the use of vwap includes stripping special crossings etc and looking at historical vwap to calculate a range. charts are usefull as a quick indicator along with news,however all this does not mean ride em cowboy its all about risk management.
rule number 1 dont lose money rule number two if any doubt refer rule number 1.
have i made a fortune no.however since the GFC which cost me my home i certainly do it differently,even then watching live screens on single stocks i became aware of manipulation the interview Aurelius provided a link to--i had theories then, but given i am not a genius or highend quant analyst or even a low end one for that matter- i developed my own system uing simple numeracy and the mainstays of probability and possibilty as the rationale.
i have missed some large runs but prefer to take a profit off the table than dream about being right over direction.
my bet is with such a large liquidity base in the market being provided by instos and the quant driven algos determining market direction that it is inevitable stocks will not really trade at fair value, it is just a directional market chasing liquidity and profit through accumulation and directional change--all in minutes transacted in milliseconds.
the asx have not been as proactive as they should, other exchanges and regulators are certainly doing more.
however the rules of engagement have changed,the instos do have to abide by operational requirements that were non existent prior to the gfc.
the regulations will continue to evolve.
it is my belief Barack Obama has been instrumental ipushing for unilateral reform across the G20,having spent 20years on wall street with a little firm called Munger and Tolles who are closely associated with the Oracle from Omaha, Warren Buffett.
there is a real effort being made to restore integrity to the market in the context of a tech driven era.
the asx have a separate data exchange through which all orders are routed as do the G7 ,if there is a rotten apple in the barrel they can find it
