Why institutions make order block and why they just don’t buy or sell when they want to? I heard that there are some books where is explained how institutions trade and their way of thinking, can somebody tell me all books(which you know) where I can learn this stuff?
I don’t think anyone will be able to answer this question for your completely.
There are too many variables to take into account. If you were more specific, like- how does a long only fund operate? Or, how does a market maker operate? Or, how does the commodity desk at Merrill make money? You’d prob be able to get a better answer.
Lots of phone calls.
Lots of off-the-grid stuff.
Why? Because they need to maintain an edge.
There are others that are more transparent (think ARKK).
The real question I have for you, is, why do you need this answer? How does it impact what you do as an individual?
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I am more interested in that what is their logic behind, how they think and enter trades. My second question can be how it works or how they operate. The answer of first question can help me in trading and second is just because I am interested in that, nothing more.
I know that you probably can’t explain that in one post but if you know where can I learn that( for example any book about it) it will be great
Most are long-only, and, they spend a majority of their time managing risk/exposure.
Watch CNBC from 6AM to 6PM every day for a few years and you’ll figure it out.
I know that but I am interested in their strategy, i know that they don’t trade trend lines, channels, indicators etc.
How can I learn that just from watching it? Btw i am not from US, and I am not sure if you there is a CNBC channel or you thought on youtube.
I know what order block is but why it works like that, why they don’t just buy or sell when they need to do that. I need the logic behind, not just simply what they do.
I think it is explained in the link. Notice that whoever wrote that, have done it pretty well.
There you have the answer of why they don’t just buy or sell.
Google CNBC radio and you can listen for free, all day every day.
Just trust me on this one. You will hear from every single type of C-suite executive, the best macro traders in the world, commodity traders, FX, crypto, international strategists, and traders with 20, 30, 40 years+ experience.
Nobody can listen a radio for 12 hours a day right? Can you just help me with answering how they think, which strategies they use, or where can i learn that (where they learned that and how they became what they are).
Have you read ‘The market maker method’ by Steve Mauro?
A lot of it is explained in that
A lot of amazing things were accomplished by people who were told “Nobody can [insert anything challenging] for 12 hours a day right?”
Good luck out there and stay safe.
Jake
why do you want learn when your not an institution trader, it would make more sense spending time and energy trying to become a profitable retail trader
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Ok, let’s try. This is a very complex subject. To even explain a little bit how they think, which strategies they use and where you can learn it, you first need some background.
1.- If you need pre undergraduate level then:
- Introduction to Calculus, Calculus I and Calculus II
- Algebra I and Algebra II
2.- To first understand these topics you first need:
- Two undergraduate courses on Statistics.
- One or two in Algebra
- One in Linear Algebra
- Three in Calculus
(You don’t have to take these courses as there are many books available for these subjects.)
3.- Good programming skills is a must:
- Some for research: Python, R, Matlab, etc. (One of them could be enough)
- If you want to learn about low latency trading then: C++
4.- In the conceptual side of the business:
- A book about Finance
- A book about Financial Derivatives
5.- After that you have the basis to start learning some closer subjects:
- To read two or three books about Quantitative Finance or Financial Engineering.
- Some about Machine Learning, Data Science.
- Some about Machine Learning and Data Science related to the trading world.
- Read about low latency C++.
I told that i wanna know how it works and ofcourse it is better to trade with high percentage win rate and huge RR.
But how can maths and programming help in forex? I don’t understand. What do they need to get a job as a institutional trader? Probably some university degree when they learn something that you wrote but i am not sure how can that help.
I know for imbalances, wyckoff, OB etc, but i want to know more other stuff and more detailed about these I mentioned.
No I haven’t, thank you.
You need to first understand them and then you’ll understand how they help.
It is like visiting a biologists or chemistries forum and ask for an answer on how the coronavirus vaccine was invented, that you need to understand that and why they use maths, and that you are not sure how can that help.
Can you answer what do they need to become a trader for institutions?
Depending on the job tasks. Spend some time on the following link to read some of the requisites for Algorithmic Trading:
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