
Rakshasa Taisab
Caldari Sane Industries Inc. Initiative Mercenaries
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Posted - 2011.05.21 09:38:00 -
[3]
Originally by: Vaerah Vahrokha These are not stocks. If you have nothing to do but leave money sitting in the market (= risk) for a month, then you are assuming risk for no reward and you are providing free liquidity to someone else.
By the time you can see the market moving up again, it's too late to buy back several days worth of trade volume off the market. Even if you estimate exactly when it would start rising with chartographical techniques, to buy back those stocks would prematurely trigger that rise leaving you with nothing.
But since, as you say, you only trade a billion here, a billion there, sure it won't matter much.
However not all of us deal in such paltry sums.
Originally by: Vaerah Vahrokha It's not chartography, it's money management and it is used by all kinds of traders.
Moving **** around for the sake of moving it around is called 'stupidity', not 'money management'.
Originally by: Vaerah Vahrokha No, the market was flat, staying in it is stupid. Why would you park billions at 0% interest for a month? Even Grendell 1.7% bond would be better compared to this.
1.7% - 50% = 48.3%
What an excellent investment tip... It's almost like there's a huge supply contraction that no one knew about, which lead to a price hike no one expected to come within a few weeks time. 
I'm left wondering if you got some kind of OCD that demands you to ensure every single moment of time your assets have maximum positive velocity, screw the long term. (Where long term means > 3 weeks)
Originally by: Vaerah Vahrokha Even a fundamental trader would not tie money for a month doing nothing. Any kind of traders buy low and sell high. There's no "sit middle". Furthermore are also mixing in fundamental traders with news traders.
Fundamental traders will have to see the fundamentals change before they act.
If being a fundamental trader means always being too late to profit off a trend, then how do they make any money?
You're saying they can't trade when it is possible to buy, and they can't buy when you say they can trade. Something here is fundamentally wrong, and I'm not saying that just to make a pun.
Originally by: Vaerah Vahrokha Banning bots is not a fundamental, it's a news (until, past months, it becomes a real fundamental), Technetium being turned in bottleneck is, NPC goods being turned in PI are.
A technical trader in all of this would just have sold when market flattened and *incredible to say* bought when the market started to rise again, freeing money to do something else in the meantime.
Anyone who followed FF11 knew the bot banning wasn't a news item, it was fundamental change in the game. And anyone who bought enough to matter also would know they couldn't just dump, move money around and then buy again within that period of time.
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