Hi all!
I started this thread to answer one of my deepest doubts.
Reading many threads of newbie asking for some info about what they should study to become profitable traders i often see many Pros recommending getting into market microstructure, so: partecipants of the market, type of orders, order flow, type of markets etc..in one post of james16 thread (http://www.forexfactory.com/showthre...44#post4242344) i've read "most of what your going to find that is old is going to be worthless.. what you will find relating to the price action and volume will be priceless"..
thanks to post like this and other threads (in particular those ones about order flow) i started studying this kind of stuff: i started from "trading and exchanges market microstructure for practitioners" by larry harris, than i passed to darkstar posts and many papers of people like Osler,Berger,Rime and many others you know better than me. All i found at the moment, obviously helped me understanding the market, But i wanted to ask:
how can all this material improve my trading?
I mean: i understood why false breakout happen, why price that accelerates towards a support/resistence (or supply/demand zone) is likely to turn or what kind of action takes place at S/R at many other things.. in other words i understood the "why" of many things.. but many traders trade profitable without reading 400+ pages book and papers and without knowing the difference between Dealer Market and Auction Market.
In the last article i'm reading, "The market microstructure approach to foreign exchange: Looking back and looking forward" by Michael R. King, Carol Osler and Dagfinn Rime,much in line with this one by darkstar "why is market microstructure useful" i understood "Order flow can and does reveal the intentions of private information" but still remain the main question " Is determining order flow something this kind of lectures can help me with or i'd do better staring at charts and practice with price action?
moreover, my dream is to become a quant trader.. is market microstructure more important for this kind of traders? if yes, in which way?
anyway i have to say i haven't finished my market microstructure studies yet.. so my post doesn't want to say "market microstructure is usless.. don't waste your time" but i only hope to have some answer from more experienced traders that can confirm i'm on the right way or tell me if i'm missing something.
greetings
jc
I started this thread to answer one of my deepest doubts.
Reading many threads of newbie asking for some info about what they should study to become profitable traders i often see many Pros recommending getting into market microstructure, so: partecipants of the market, type of orders, order flow, type of markets etc..in one post of james16 thread (http://www.forexfactory.com/showthre...44#post4242344) i've read "most of what your going to find that is old is going to be worthless.. what you will find relating to the price action and volume will be priceless"..
thanks to post like this and other threads (in particular those ones about order flow) i started studying this kind of stuff: i started from "trading and exchanges market microstructure for practitioners" by larry harris, than i passed to darkstar posts and many papers of people like Osler,Berger,Rime and many others you know better than me. All i found at the moment, obviously helped me understanding the market, But i wanted to ask:
how can all this material improve my trading?
I mean: i understood why false breakout happen, why price that accelerates towards a support/resistence (or supply/demand zone) is likely to turn or what kind of action takes place at S/R at many other things.. in other words i understood the "why" of many things.. but many traders trade profitable without reading 400+ pages book and papers and without knowing the difference between Dealer Market and Auction Market.
In the last article i'm reading, "The market microstructure approach to foreign exchange: Looking back and looking forward" by Michael R. King, Carol Osler and Dagfinn Rime,much in line with this one by darkstar "why is market microstructure useful" i understood "Order flow can and does reveal the intentions of private information" but still remain the main question " Is determining order flow something this kind of lectures can help me with or i'd do better staring at charts and practice with price action?
moreover, my dream is to become a quant trader.. is market microstructure more important for this kind of traders? if yes, in which way?
anyway i have to say i haven't finished my market microstructure studies yet.. so my post doesn't want to say "market microstructure is usless.. don't waste your time" but i only hope to have some answer from more experienced traders that can confirm i'm on the right way or tell me if i'm missing something.
greetings
jc