A trader from another arcade revealed that he had been losing money since the year started, everyday in a row for 3 weeks! It's unprecedented, he couldn't believe his ass luck, it has never happened in his entire trading career for such a long spell of money losing days.
Yes, few of my traders lost money this month too. What exactly happened to these seasoned traders?
We are now trading against better, more informed traders as well as our greatest enemies, the big Algos who uses their muscle power to push the market up and down sometimes for no apparent reason to squeeze the smaller traders.
I must admit that the operators behind these Algos are good, they are well capitalized to intimidate the smaller traders with their size. They have the speed, at least a 1000 times faster than any trader, using machines that have no emotion. These powerful machines can feel the pulse and the heart beat of the market to sense a certain market direction.
Machines don't need to rest while traders need to be alert at all times. With trading hours extending longer and longer to almost 24 hours trading, the volatility shrink making it even more difficult for a trader.
Another factor that heavily favours the Algos is the volume rebate given by the Exchanges for the high volume of trades churn out by the machines and big time traders. Their transaction cost is so much lower.
Scalpers and Calender spreaders are most affected by the Algos with their high cost of trading. Comm take up a big percentage of their profit which allow only a small margin of error for their trades.
I was told the " The Flipper" has set up shop in Singapore to take advantage of the smaller market to corner and the system here that favours the Algos. Just google and read more about this single largest and most successful individual futures trader on planet Earth. He can simply put anyone of us in his pocket.
I think there are many more smaller "Flipper" now in our market supported by big Prop firms, that's what make trading so tough.