"Flat Crash" single trader theory

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Ketvirtadienis, 13 Gegužė 2010 18:28

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They say your first loss is your best loss
Trading is an art, not a science, and you gotta plan your trade and trade your plan
Origins of the mini-crash are both irrelevant and probably not even discoverable. What is important is to understand the conditions that caused the crash to happen in the first place. If you peel back the layers of market activity from March 2009, you'll find that the majority of the market's surge occurred in overnight trading on virtually no volume.
That's where the irony lies; policymakers have essentially created the very master they serve by attempting to control it. Their hands are literally tied by markets, and everything that is implemented to prevent the market from exerting control (really, from enforcing price discovery) results in ever tighter binds.

The good news is I believe markets will eventually win this battle for control.