You Need to Be a Stealth Trader

Traders Trade Secrets

Why You Need to Be a
‘Stealth Trader’ (Shhhh–You Really Do!)

 

In our last posting, we talked about how the very structure of the Stock Markets , and the key role of financial institutions called “market makers”.

These Market Makers literally do “make the market”.

And they work ceasely to squeeze Volatility to a minimum.

Now you, on the other hand, as an individual trader with a modest trading account, you very much need Volatility to have a shot a making profitable trades on a regular basis.

There is a way to do this.  We call it “Trading on the Edges”.

You see, once any driving force or trend becomes “known” to the masses, or the media, or even the “insiders”, the Market Makers will push the “other side”.  They will always and forever try to squash substantial trends of any kind.

Substantial trends that are well-publicized would mean that individual traders could go in and make good money.  They don’t want this to happen.

So a Steady Trader will look fo be a “Stealth Trader” trading opportunities that are not in the public eye.  Because this is one way to make a gain of a few percentage points quickly, before the Market Makers step in.

And this is why we at Steady Trader talk so much about Quant Strategies.  Quant strategies are one way to find the opportunities that are not in the spot light.  That means staying away from companies “in the news” or those covered by one of the many public pundits.

Of course, every Hedge Fund also practices Stealth Trading.  That’s how they get what are sometimes incredible returns.

Before we close this topic, let’s be clear about one thing.  Being a Stealth Trader and “trading on the edges” does not mean going for the “high-risk” opportunities.  Such as penny stocks, leveraged  vehicles, some types of options, or off-market-hours trading — to name a few.

There are ALWAYS A FEW plain-and-simple, straight-ahead, long positions to enter on just about every day the market is open.

Your job as a Stealth Trader is to find them.  And you won’t find them by reading Financial Media, or watching TV.  Those picks are in the limelight.  We say, “Stealth Traders Use Quant”.

the Editors