Why I include Tradestation as a way to potentially lose money? Market maker or selling your order flow anyone?
Someone asked me:
Bryan sorry to hear that person had a bad experience with an FX broker. Serves as a warning that you need to be careful who you do business with (especially so in the FX world) but I see nothing in their comments that mentions ninja trader or Tradestation. What was your reason for including them?
Simple, Tradestation is tied to itself as the broker. Basically, I don’t try brokers so pick the least corrupt which is Interactive Brokers. Call it market making manipulation or selling their order flow.
Thought for the Day: The best trades I’ve heard of involve some big asymmetry in the order flow or supply/demand imbalance. Some deep understanding of market psychology and structure was employed in all cases: Examples: George Soros- Shorting the pound. Espen Haug – Buying so many ‘undervalue’ currency options that it artificially stimulated demand. The banks that he was buying the options from had to buy some of them from other banks (I guess they didn’t want to write/be short too many options because of the hedging costs.) Paul Tudor Jones – ” I can always out trade a computer because the computer never understands trading psychology.”