If you have an opinion, then VOICE IT! SUP/RES

Evening, Morning or Afternoon to everyone wherever you may be!

The purpose of me starting this thread today is to discuss 2 'facts' that I hear people quoting regularly that dont seem to agree.

These are the 2 quotes....

'The pros(big fish/big dogs/institutions) dont trade short term'
and,
'Support and resistance are bounderies as to where the majority think price should not move above/beneath'

Note, on the second quote the 'majority' in my opinion, is the majority of the money, not individuals. People such as you and me trading will make no difference to the make-up of the market or the way it moves...

So if the 'Big Dogs' only trade long term, and the retail traders make no difference, then why do we see the market bounce up and down in a 30pip range(or so)?
I suppose the consolidation could be explained as the buys and sells weighing eachother out, but is this possible for such prolonged amounts of time?
For this to carry on how it does there has to be some big money capitalising on the situation doesnt there?
Which in turn means (for the consolidation periods atleast) that Big money IS trading short term.

Please anyone comment and leave opinions.........

Leon

I don't know how the big boys trade. If they were just trading long term their trades still might move the market. Like if Warren Buffet wants to buy 10bn GBP with dollars for the long term, it would probably cause a big spike up.

The Big Dogs also play with short term trades. This is where some got their start in the foreign currency market.

I think big traders also scalp... while maintaining long term trades... and using a small % of the capital to scalp.

I think the big boys have a lot of arbitrage opportunities too that are not really possible for retail traders

there are millions of traders big and small placing bids and offers at every price level whether trending or consolidating. No-one, Big or small knows where price is going to end up or when. bank of Thailand gambled half of its reserves on a single trade and lost!! and Warren Buffet traded EUR/USD long and lost billions before he chose to cover. I dont know how the big dogs trade but I do know that most banks trading department trades at a LOSS!! Banks make most of there money in foriegn exchange from the spread they charge to there customers, not from trading. Most of these people lose like any other group of traders with the tiniest minority making up for the rest of the bunch. So, despite all the information and resources they are no different from you or I. We even have access to the same prices as them through ECN brokers. The odds against success are still huge but about the same for everyone, big or small. Its about as level a playing field as your going to get.

Wow, This thread magicaly resurfaced! I thought it may have been one of my embarasing ones that made me sound stupid, but it isnt too bad I supose.

Well, Thanks for your inputs guys! If they are playing the same ground as us then there must be hope...... maby..... somewhere....... in some form, lol.

I have been reading a little about mathematical trading recently, Using no charts..... just counting ticks or something like that. Cant realy get my head round it as yet.

Mathematical Probability trading and writing programs to do so feels just a tad out of my league, hehe. But maby thats the way forward?

I see your point. I would venture to say that \"Big Money\" is measured in the larger time frames the week day 4 hour charts the rest of us contribute more to the smaller time frames the 1 hr to the 1 min. Just a thought no facts or proof to back it. Mainly food for thought.