Thanks DS, and I'll check out the book as I like to have a thorough understanding of these things.

US Debt Ceiling Crisis Thread

Can that explanation be backed up by data/proof/whatever better than the money supply explanation? Did they lose faith in their currency and demand a risk premium because money was being constantly printed, and therefore the money supply affected ...

US Debt Ceiling Crisis Thread

Indeed - can someone who denies the influence of the money supply affecting inflation explain Germany's hyperinflation? I don't know much about economics so don't have firm opinions one way or another but would be interested in the explanation.

US Debt Ceiling Crisis Thread

Exactly.

The Bigger Picture Fundamentals and Resources

You talking about "wannabe" traders living together to save on expenses and focus on trading?

Order Flow - Achieving the mindset - Part 2

That headline means absolutely nothing. Just an update on where price is.

Order Flow - Achieving the mindset

A bit old but this one always gets me. image

Trading Cartoons and Pics

url

1987 Trader: Documentary about Paul tudor jones

Personally I don't think Trichet signalling a rate hike next month will get us to 1.5 - at least not unless there is also positive news on the Greek front. I'd be surprised if it takes us past 1.4850 by itself (though my level of surprise will ...

Order Flow - Achieving the mindset

url Lots of economic data and you can download it in excel spreadsheets for free.

Economics/politics resources

I've read it, it's basically got two types of things: empirical observations and theoretical models. imo the models are unnecessary to understand, they are just (if my memory serves me correctly) alternative models of how information might get ...

Order Flow - Achieving the mindset

I think this could be a good idea, hell I've thought myself of taking a sabbatical for 6 months (if my employers would allow it) and just focus on it completely, maybe move to some other part of the country where life is cheaper... but for now I ...

Order Flow - Achieving the mindset - Part 2

Hi James, On the first arrow, the market fell about 300 pips in about 10 minutes, then recovered fully within hours. Nothing had changed during that time, no new information - either the market was not fully reflecting information at 79.50, or it ...

Order Flow - Achieving the mindset

If the semi-strong or strong theories are correct, what information did these two moves reflect?

Order Flow - Achieving the mindset

Well it depends how they buy. If they all use limit orders at or behind a given price, then the market won't move past that price. If they all use market orders, then depending on how much liquidity there is on offer, price may shoot up. Note that ...

What is the market to you?

A place where people can buy and sell, for any reason in the world (utility, speculation, entertainment, etc.) Any move in the market could basically be called a search for liquidity (besides quote shifting by liquidity providers, but nvm). All ...

What is the market to you?

I don't remember if the adverse selection model is based on empirical evidence or not, or whether it applies to certain markets only, but in Osler's paper "Price Discovery in Currency Markets" she finds that spreads are actually narrowest for ...

How dealers/market makers operate

url Hot potato model.

How dealers/market makers operate

Thanks man, I really appreciate the time you must put into these posts. They've had a huge influence on me in the past couple of months, and were exactly the kick in the pants I needed (which I had originally hoped to get from DS's book) to continue ...

Order Flow - Achieving the mindset

Just responding to the pic, I would think sentiment is far more correlated with price and less so with fundamentals. This allows moves away from fundamental value, to a point where value traders will want to enter.

Order Flow - Achieving the mindset