|
|
|
|
|
|
|
are Japanese commandos, who have historically been skilled in the art of watching an enemy and exploiting weakness through stealth and silence. Ninjas adapt to circumstances and excel in discipline. Traders can learn the ninja art of watching, absorbing, adapting, and prevailing by adhering to sheer discipline. |
|
|
|
|
|
|
|
|
Market makers know that DAET traders account for approximately 20 percent of the daily trading volume on Nasdaq. Market makers know that DAET traders desire, on balance, to go home flat and thus have no staying power for any great period of time because of their need to close out positions by the end of the trading day. Therefore market makers want to wiggle and jiggle prices during the day in order to shake out DAET traders before the end of the day. It is interesting to note that market makers also, on balance, like to flatten out their positions by the end of the day and quote more competitive prices nearer the close. At least one recent study by Professors Simaan and Whitcomb indicates that market makers become much more competitive in their prices when they want to close out their trading inventory at the end of every day. I have only seen a draft of this study, but the results should be further explored by the trader and taken into account when trading near the end of the day. |
|
|
|
|
|
|
|
|
The market close is perhaps the best time of the day for exploiting trading opportunities. Volume generally rises, price movements intensify, and opportunities abound. You could extract from the Simaan-Whitcomb study referred to above that market-maker wiggles and jiggles are less frequent when trading the close. Be sure to keep a clear head and be aggressive, but remember, I do not advise Direct Access Electronic Traders to take home positions; so, therefore, only enter into positions that you will be able to close out before the close of the trading day. Remember that overnight positions, on balance, spell disaster. |
|
|
|
|
|