Dead end...

I guess I'm thick.. Gaston has pretty much said what Darkstar has already said in the past. The concepts such as finding concentrations of orderflow etc... are pretty commonsense... no one wants to trade in areas of low liquidity.

As with most of these type of posts commonsense concepts are put forth but very little meat or substance is attached. The hardest part about trading with orderflow isn't understanding these basic and commonsense concepts... its finding the orderflow information to trade them on.

I personally love the Bill Lipschutz interview in New Market Wizards. He reminds me of a larger scale Darkstar . He was also knowledgable about options.

I encourage everyone to read the interview because its interesting.

At one point in the interview he is asked what makes him successful.

He says:

"Foreign exchange is all about relationships. Your ability to find good liquidity, your ability to be plugged into the information flow-it all depends on relationships."

"Those of us who did well were generally the ones who were accepted by the interbank circle."

Were you trading off information flow?

"That's what foreign exchange is all about"

Thanks Deuso, I'll have to check that out.

I have to believe that. Information is the key to fx and the ability to interpret and trade that information like so. Today would be a small example of that: I didn't realized EU was going to back Greece and result of that info was the market took off. I wasn't prepared for that move because I haven't been focusing the Fundamentals. The ability to know that EU would back Greece I would have jumped on all over any EUR pair, as they all did very well today.

This is just as small example of why information is king. We would like to believe the market is based on Supply and Demand, but lately I've been pondering if whether the market is based on News. When I think back at all the profits I've made, two things have always been a factor: News and Liquidity. Though I don't trade news, I do trade after news releases (after effect). We also like to believe that during news releases liquidity is high but I feel liquidity is at it's highest an hour or so after news has been released ... the result of traders getting wind of the information late.

QUOTE:

"I suppose I'm a 5year old in FX terms, I know how to walk and speak, but I'm not saying/asking exactly the right things and not walking in the right direction."

Leon

Must say that line gave me a chuckle, Really an interesting thread, some very good contributions by many here.
thanks...

Hi leon! Did you mange to find the edge you were looking for? I think I am in the same position you were when you started this thread, so would be good to know it has a happy ending

I don't think so.