Written in the 1930s, but I felt a lot of it might well apply to Betfair today: http://www.businessinsider.com/the-rich ... 013-2?op=1
Jeff
Psychology of market dynamics
That's a good post Jeff. The thought-process or mentality is so akin to that of Betfair trading.
I couldn't help thinking of the contrasting ways of making money in via stocks.
For e.g. on the one hand you have long term prospectors & dividend seekers that make money as businesses prosper - like Warren Buffett. And on the other hand you have heavy traders that are slightly detached from business fundamentals and 'return on turnover' is the name of the game - like Richard Wyckoff and George Soros.
If everyone had access to DOM and direct access with reasonable speed I would think BF traders would make good traders in the financial markets owing to their 'Market Reading' skills.
I couldn't help thinking of the contrasting ways of making money in via stocks.
For e.g. on the one hand you have long term prospectors & dividend seekers that make money as businesses prosper - like Warren Buffett. And on the other hand you have heavy traders that are slightly detached from business fundamentals and 'return on turnover' is the name of the game - like Richard Wyckoff and George Soros.
If everyone had access to DOM and direct access with reasonable speed I would think BF traders would make good traders in the financial markets owing to their 'Market Reading' skills.
It would be interesting to see how a Betfair ladder trading pro would do at Level 2 trading in the financials.
Jeff
Jeff
switesh wrote: If everyone had access to DOM and direct access with reasonable speed I would think BF traders would make good traders in the financial markets owing to their 'Market Reading' skills.