First off, let me start by saying that thinking of a naked man, lying in his bath, talking about pin bars, RRT's and thingies that go up and down brought horrible visions to my minds eye and shall not be discussed here...what is seen cannot be unseen.....unfortunately, dammit!SteveHopwood wrote:Hehe. Call me Mr Suspicious Picky, but something here makes me suspect that CJ might be right about these pinbar thingies.eltax100 wrote:WOW look at the spread can anyone beat this ?????
I lay in the bath this morning, closed my eyes to reflect on all this, and all I could see in my mind's eye were M's. W's, rrt's and pinbars.
As for the rest, you are spot on.
Bob is a wise man and his words of wisdom on the market hold true. Market makers are called market makers because it is their job to make the market. When you or I choose to buy, they are the ones REQUIRED to sell. When we choose to sell, they are the ones REQUIRED to buy.
Getting back to Bob's remarks. When price is moving up and everybody is buying, the market maker is the one who is selling to us. In order for him to profit, he must bring price down below an average price for all his aggregate sells, in order to make a profit....therefore, what goes up, MUST come down....
When the market is dropping and we are all selling, it is the market maker who is buying on the other side. In order for him to profit, he must bring price back up, above his average price for all of his aggregate buys. What goes down, MUST come up....
In short, this is how the market works and Bob's words hold true.
Brokers and bookies have a lot in common. In theory, they live for the spread. Their risk free business model is to have a balanced book, and make their money on the spread. However, both brokers and bookies are human, and are ruled by the same human traits we all have. Greed being one of them.
A bookie or a broker who has a "whale" as a customer, the one who loses every week, but keeps depositing fresh capital back into his account, is handled "in house". His trades or bets are not going to be offset with the others. In general if a either a bookie or broker has a large imbalance, on one side, they will offset that with another broker, bank or bookie and not accept the risk of the imbalance. If it's the whale who is the imbalance, that will stay in house.
As for GP as a broker, I have no reason to believe they are not a good broker. As long as your trades are executed without delay, your problems are handled quickly and your funds are sent to you when you request, there's little else to ask for. If you are a profitable trader and you find you are constantly being re-quoted or your orders are being delayed, then it's time to look for another broker.
When I set an account up with a new broker, I will test them by sending a small deposit and trading it. What I have seen with some, is that over time, as the account grows larger, my trades are being delayed. Sometimes to the tune of 5 re-quotes or more. Each delay costs me money and it's the delay that is added by that broker. Time to pull the funds and find another broker before committing major funds to this account. If they do this for a small account, imagine what they could do for a larger one.
Having Jeremy on the inside is an advantage to the members here who choose to use GP, but all brokers are in business to make money. There's been a lot of good brokers that have cost their traders much heartbreak and loss, through the actions of just one person. You folks outside of the US have it better than we do as the politicians here herd us into the US brokers where we have no safe guards or protections. Look at PFGBest. Supposedly on of the best....that still has nearly a six figure account of mine locked up in receivership, of which I will probably never see a penny of again.
I believe the link to the broker info you referred to is this one:
http://www.craigharrisforex.com/webinar ... a-oropeza/
While they discuss many things, I don't think they talk about the back office plugins that are used to manage the Empty4 trader accounts. That's another cesspool full of crap right there in itself.
A word of advice if you are using a broker who advertises themselves as a "STP" or "no dealing desk" broker....read the fine print because those phrases are just a series of words. Sometimes you will find "other words" in the fine print that have a different meaning...such as "we MAY" or "we CAN" take an offsetting position in your trades.... Read the agreements you all have signed in setting up your accounts. No matter what is advertised, it's what's in the find print that counts.
I won't discuss specific's on any broker, but I will use brokers feeds to demonstrate the examples I use within this thread. With brokers, it comes down to , Caveat emptor, as always.
As for the other things you've brought up Steve, I'd say you are starting to see this market for what is really is. When you do, it's like getting hit with that sledge hammer right between the eyes.... or snuffing up a whole can of Wilson's Extra Menthol!
CJ