TRADE211 - Trade Psychology
| Trade Psychology | |
|---|---|
| TRADE212 | |
| School of Economics | |
| File:Trade211.jpg | |
| Course | TRADE |
| Complexity | 2 |
| Practical | No |
| Overview | |
| Applying Psychological Warfare to Trading | |
Contents |
Syllabus
(under construction)
Teaching Guide
Psychological Warfare (no, really)
Popular Methods
- parallel order sniping
-- one small-volume market order to bait snipers
-- primary high-volume market order to blitz
- mass volume orders
-- less work to unload volume
-- can discourage market entry until volume goes down
-- encourages sniping, though it really has little effect
-- you can drive the market to smaller margins
-- can be identified as a major marketer
- small volume orders
-- less conspicuous, may discourage sniping
-- not identified as a major marketer
-- more work over time
- coerced buyouts
-- works only when margin is very wide
-- cuts into your own profits, the bigger the bait the more it cuts out
-- may not bite
-- very fast sell if it works, SEP
- market cornering
-- requires a HUGE amount of capital
-- very high risk
-- chance of very high profits if successful
Hints, tips, and best practices
- it is difficult to single-handedly kill the market
-- but it can be done, if only temporarily
-- but there's not much point
- +/- 0.01 will maximize your profits
-- +/- 0.02 or 0.03 can give you a bit of leeway for accidents
- forced math farts
-- example: Sell Order for 10,000.01 may force someone to set for 10,000.02
- attempts to force out of market usually fail