Jul
14
Wednesday Notes – The Other Guy’s Hand
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While I won’t cut and paste every Tank transcript (a bit of work!), in the spirit of “We Don’t Nail Every Sequence”, I thought today’s morning transcript shows a good overview of some early struggling with the market pace (pace always being more important to many of us than any technical pattern) before nailing the midday push.
And it only takes one!
The yellow highlighting also reinfoces the notion that trading - like Poker – is ALWAYS about the other guy’s hand … and not yours. Those that think about patterns and their own hand (the majority of traders) will continue to donate to the few who have figured that out.
“The yellow highlighting also reinfoces the notion that trading – like Poker – is ALWAYS about the other guy’s hand … and not yours. ”
This definitely works in poker, when you have someone who will actually fold.
My question is how are you reading the other guy’s hand in trading? I used to pay alot of attention to standing orders/volume in bid/ask, but alot of times it seems like they flash orders back and forth to try to fake you out. Also I assume there is volume/trades moving the market that aren’t in the level 2.
Thanks
Brian
Hi Brian.
While Level 2 (or the DOM for futures traders) can indeed be a poker game in terms of bluffing (I love selling to huge bids or buying into huge asks), I was referring more to anticipating who’s on the losing side of the current market, and what action they’re going to have to take as their pain increaes.
For their actions — plus that of others who know their “hand” — will help fuel the continuing action.
Hope that helps.
Don