Basics For Beginner Investors & Traders
The two most dominant Market Participant Groups in the Stock
and Options Markets today are Dark Pools and their counterpart the High Frequency Traders. Dark Pools is an ominous and dubious title for
the giant Mutual and Pension Funds venues, where these giant Institutions buy
and sell millions of shares of stock. Dark Pools are a benefit to both
Independent Investors investing for their retirement, and for Retail Traders
who are trading stocks for monthly income.
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Dark Pool
orders are controlled bracketed orders which control price in such a way that
the footprint of these giant Institutions which are long-term investors is
easily identified on a stock chart, even if an Independent Investor or Retail
Trader is new at reading stock charts. Dark Pool order systems are
automated, which alters Candlestick Patterns.
High Frequency Traders are not individual traders. They are companies that have
written computer algorithms. These are designed to search through millions of
news articles to find news alerts, or search the mega order flow of millions to
billions of orders to find anomalies in order flow that then trigger an
automated millisecond trading activity. They can trade as many as 90,000 orders
in one minute. The Independent Investor or Retail Trader order fill requirement
must be executed by the broker within one minute, to one and a half minutes.
High Frequency Traders have been in the news, but most Independent Investors and Retail Traders are severely misinformed as to their role and true risks which they created. In addition Independent Investors and Retail Traders do not understand the role and benefits of the Dark Pools. Watch the Balance of Power webinar about Dark Pools and High Frequency Traders.
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Summary
Independent Investors and Retail Traders are often
misinformed or uninformed about the most influential Market Participant Groups
buying and selling stocks and options. This causes them to be at higher risk of
whipsaw trades, poor entries and exits, weak run action, buying too late into a
stock, or selling at the wrong time.
Beginners go to the 12 Lessons "Basics of the Stock
Market" on the TechniTrader website.
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12 Webinar Lessons
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