The Market Maker’s Edge: Day Trading Tactics From a Wall Street Insider

The Market Maker’s Edge will teach you how to trade with the best market makers, not against them. You will become adept at overcoming short-term gyrations by sticking to the methods and tactics provided in this book. The Market Maker’s Edge will help you overcome fears or weaknesses by developing successful trading habits and focusing on your strengths. Your conviction and staying power will increase and you will become a better trader, less susceptible to the influences that are outside of your control.

Introduction:

Day trading magnifies the emotional pitfalls people face in everyday life, including greed, fear, attachment, shame, regret, and the search for security. These emotional and psychological traps that I call the internal factors are the most common causes of financial loss in the trading world. To be successful, every trader needs an effective trading plan. The best plans are simple and comprehensive, addressing external factors such as risk control, entry and exit, technical and fundamental analysis, trend spotting, and trading tactics.

This book stands out from most books on trading in that it places special emphasis on both the internal and external factors. It is also unique because it is written from the perspective of the sell side of the trading world, shedding light on tactics and methods used by professional Wall Street traders.

The information that has not been readily available to the public is what market makers actually do, and what makes many of them effective day traders. Day traders have all sorts of misconceptions about market makers’ roles and objectives. Market makers are incorrectly stigmatized as the enemy of day traders, when in fact the main enemies of day traders are day traders themselves.

Market makers come in all shapes and sizes. They range from small retail order flow shops that do not put up any risk capital, to the largest institutional global banks that consistently take large risk to facilitate order flow. Institutional market makers’ strengths lie in their experience and technical expertise. One advantage they enjoy is that they understand the way that order flow works. Large buyers or sellers always leave traces through their activity. Their activity is visible to all who know how and where to look for it. The Market Maker’s Edge helps to clarify this activity, providing traders who lack market making experience with information about how order flow works. This book sheds light on a simple way to take advantage of identifying short-term trends emanating from volume.

Contents:

• RISK CONTROL
• UNDERLYING CONDITIONS
• FUNDAMENTALS
• THE TRADE
• TECHNICAL ANALYSIS
• THE PULSE OF THE MARKET
• ADVANCED TRADING TACTICS
• PSYCHOLOGY

The Market Maker's Edge: Day Trading Tactics From a Wall Street Insider By Josh Lukeman pdf