{"id":20372,"date":"2012-08-02T21:33:50","date_gmt":"2012-08-03T01:33:50","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=20372"},"modified":"2013-04-29T14:28:54","modified_gmt":"2013-04-29T18:28:54","slug":"a-note-to-traders-on-the-absence-of-liquidity","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/a-note-to-traders-on-the-absence-of-liquidity","title":{"rendered":"A Note to Traders on the Absence of Liquidity"},"content":{"rendered":"

SMB Traders,<\/p>\n

The last two trading days have been the worst liquidity I have ever seen.\u00a0Obviously the huffiness on the desk is high. IMO is should be.\u00a0I have not been this mad on a desk in three years myself trading this ridiculous market.<\/p>\n

The market is broken. And some of these moves are absurd.<\/p>\n

Having said that GMan was still able to post almost (deleted because of BD rules) in P&L. And as long as we\u00a0can hit the bids and pay the offer then we can make money. As traders there is no right to an orderly market.<\/p>\n

Trading is a privilege!<\/strong><\/p>\n

The truth is the more movement intraday in stocks the more opportunity for us. Let’s agree on one thing first:<\/p>\n

1) Let’s end the complaining and just accept this is the market and that is the way it is. And now\u00a0how do we capture some of the new patterns being created by these low volume wicks?<\/p>\n

Some solutions to consider:<\/p>\n

a) trade smaller
\nb) scalp
\nc) if you get stopped out on a low volume wick, get right back in
\nd) set alerts for exits and then manually exit
\ne) fade wicks to the upside of stocks clearly in a downtrend. and play for a return to the mean
\nf) if you get pissed take a mandatory ten-minute time out
\ng) trade significantly less on the open or not at all
\nh) limit the number of stocks you are trading<\/p>\n

The market will probably correct soon as algos will be introduced ending the low volume liquidity. But if not then no matter.\u00a0We then will just have new patterns to exploit.<\/p>\n

Thoughts?<\/p>\n

Bella<\/p>\n

no relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"

SMB Traders, The last two trading days have been the worst liquidity I have ever seen.\u00a0Obviously the huffiness on the desk is high. IMO is should be.\u00a0I have not been this mad on a desk in three years myself trading this ridiculous market. The market is broken. And some of these moves are absurd. Having said that GMan was still … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[2050,30,50,1828,1996,1354,2049],"class_list":["post-20372","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-liquidity","tag-prop-trading","tag-proprietary-trading","tag-smbu","tag-trading-class","tag-trading-coach","tag-trading-mentor-one-good-trade","no-post-thumbnail"],"yoast_head":"\nA Note to Traders on the Absence of Liquidity | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/a-note-to-traders-on-the-absence-of-liquidity\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Note to Traders on the Absence of Liquidity | SMB Training\" \/>\n<meta property=\"og:description\" content=\"SMB Traders, The last two trading days have been the worst liquidity I have ever seen.\u00a0Obviously the huffiness on the desk is high. IMO is should be.\u00a0I have not been this mad on a desk in three years myself trading this ridiculous market. The market is broken. And some of these moves are absurd. Having said that GMan was still ... 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