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The last picture, figure 7, shows a window from the pro version of this trading platform. It is a scalp window and allows the trader to trade the market very rapidly. The offer prices and volumes are listed above the central blue bar (scalp bar) and the bids below. The best bid and offer are closest to the scalp bar. You can trade by clicking on the prices or you can trade by clicking on the scalp bar. If you left click on the scalp bar you will enter a bid one tick better than the current bid; and if you right click on the scalp bar you will enter an offer one tick better than the current offer. This allows for a scalper to very quickly and efficiently trade inside the spread. 30 Section II Trading Skills Chapter 6: Market Forces There are two key components to successful trading: The ability to read/anticipate the market The ability to execute the trades Reading the Market The market is never the same and there is no pattern or behavior that will be exactly repeated, so reading the market has to be a subjective activity and we can never say for sure what is going to happen next. All we can do is gauge the current market and estimate what will happen. As a trader we need to have an opinion of what will happen, we then trade our opinion getting out as soon as we realize we are wrong. What we are working on, when learning to read the market, is developing an opinion. When I first walked on the floor of LIFFE, the markets seemed pretty chaotic. It was very noisy, there was litter everywhere and the pit traders seemed to be acting in an uncontrolled and raucous way. I imagine it is similar for novices looking at the markets on the screen for the first time. It must appear as if there is no order to the markets, no logic to decipher, just numbers flickering in a random way about the screen. |
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