Thursday, February 24, 2011

how to trap traders (operators' manual)

* direction

= do opposite to expectations

= do the unthinkable

= do opposite to the logic

= do the difficult-to-do

= if both bulls and bears are equally divided about the direction, trap both by being rangebound till they divide in majprity-minority ratio.


* change

= keep changing the direction

= do it with stealth


* extent of directional move

= small, big, very small, very big? keep changing? keep them guessing

= how soon will the next direction change - keep them confused


* pace of the move

= do it slowly so that they don't come to know what is exactly happening

= do it so fast that they can't do anything about it


* never move straight

= move in zig-zag

---

and how do they do it? what tools do they use?

# support

= withdraw support to buying during upmove and it will fall

= withdraw support to selling during downmove and it will rise

= support buying and it will soar

= support selling and it will sink


the objective:

trap the majority

at the cost of the minority

---

how?

keep them guessing

keep them confused

catch them on the wrong foot

if u think operators are against the fundamentals

think again!

they do what fundamentals tell

but in the least obvious

and least predictable way.


and if you think

that during strong and big rallies

majority are with the rally

you are mistaken

it is again

the minority that is calling the shot

with majority money!

is their only one operator?

no....there are many

but as compared to the number of retail and small trading houses

these are very few

but with much much more financial muscle.

if they are more than one

how do they co-ordinate?

they don't co-ordinate with each other

they co-ordinate indirectly

via common principles mentioned above.

so what can you do?

simple

trade with an operator's mind.

as a french saying goes -

to be a good bull fighter

learn to be a bull!

but

when you catch their bluff

don't shout

just sit quiet

and see the drama unfold!

No comments: