Just to add to that - I am a highly
educated person :-) (M.Sc) but have thus far found no value for all the
years of study within trading...except position management...no value
in terms of decision making as to whether to go long or short. I have
tested and programmed all kinds of technicals and all kinds of
combinations and nothing performs better than good old gut-feel....but
remember gut-feel is a product of knowing your market it is not a coin
toss as many believe.
I have also traded the very short term (tick by tick) by just watching the quotes coming through on three very large banks and occasionally hitting a bugger that is out of line by a pip or two. The spreads were very close and sometimes even zero spread, choice. I did not do this regularly but the misprice did happen at least twice a day and was tradeable for a pip or two.
Towards the end of my trading I got a trader from bonds/swaps to trade with me on the eurgbp and he really enjoyed these mispricings smiling from ear to ear when he made a pip on $1,000 a pip position. Imagine the smile on my face the day he refused to cut his position when the "misprice" was in fact the market pacer and the other 2 banks started to follow what he perceived to be the mispricing bank. It was horrible to watch almost 6 months of slowly accumulating profit disappear in a single day.
If you don't have the discipline to cut a position then dont take it in the first place.
I have also traded the very short term (tick by tick) by just watching the quotes coming through on three very large banks and occasionally hitting a bugger that is out of line by a pip or two. The spreads were very close and sometimes even zero spread, choice. I did not do this regularly but the misprice did happen at least twice a day and was tradeable for a pip or two.
Towards the end of my trading I got a trader from bonds/swaps to trade with me on the eurgbp and he really enjoyed these mispricings smiling from ear to ear when he made a pip on $1,000 a pip position. Imagine the smile on my face the day he refused to cut his position when the "misprice" was in fact the market pacer and the other 2 banks started to follow what he perceived to be the mispricing bank. It was horrible to watch almost 6 months of slowly accumulating profit disappear in a single day.
If you don't have the discipline to cut a position then dont take it in the first place.
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