The California Raiders: Piranha Traders
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The California Raiders is not a football team. It is a group of 25
traders who every trading day at 6:30 A.M. Pacific time begin a raid
on the stocks traded on the NYSE. They do not stop their attack
until the final bell. When they finish, the only things left are the
bones of the traders they went after on the floor of the exchange.
The California Raiders are what I term piranha traders. They trade
for fractions—1/8 here, 1/4 there—and take small bites of their prey.
They can attack a stock en masse when they sense weakness, and
when they do they can bring a stock down one bite at a time. Once
first blood has been drawn by the piranha traders, other traders
join the feeding frenzy, each wanting a pound of flesh. Once they
start, they absolutely will not stop until the closing bell. Who are these raiders who strike a stock without warning? The California
Raiders are made up of a group of former floor specialists known as
rogue traders by their peers. A rogue trader is a specialist or former
professional trader who has found it more profitable to trade on his
or her own than from the floor of the exchange. The raiders also are
made up of superior traders who have proved their ability by making
millions of dollars. They trade with almost unlimited amounts of
capital at their disposal. Just one of the raiders may trade over a
million shares in a single day. A few of the raiders are biomechanical
traders which you will learn about in Chapter 7.
If you are going to trade using a scalping strategy, you are going
to trade against market makers, specialists, and traders like the California
Raiders. Remember, 92 percent of scalpers lose money. If for
some unknown reason you have to trade for fractions, look for slowmoving
stocks with intraday trend. It may not be exciting—but boring
is better than broke.
The California Raiders is not a football team. It is a group of 25
traders who every trading day at 6:30 A.M. Pacific time begin a raid
on the stocks traded on the NYSE. They do not stop their attack
until the final bell. When they finish, the only things left are the
bones of the traders they went after on the floor of the exchange.
The California Raiders are what I term piranha traders. They trade
for fractions—1/8 here, 1/4 there—and take small bites of their prey.
They can attack a stock en masse when they sense weakness, and
when they do they can bring a stock down one bite at a time. Once
first blood has been drawn by the piranha traders, other traders
join the feeding frenzy, each wanting a pound of flesh. Once they
start, they absolutely will not stop until the closing bell. Who are these raiders who strike a stock without warning? The California
Raiders are made up of a group of former floor specialists known as
rogue traders by their peers. A rogue trader is a specialist or former
professional trader who has found it more profitable to trade on his
or her own than from the floor of the exchange. The raiders also are
made up of superior traders who have proved their ability by making
millions of dollars. They trade with almost unlimited amounts of
capital at their disposal. Just one of the raiders may trade over a
million shares in a single day. A few of the raiders are biomechanical
traders which you will learn about in Chapter 7.
If you are going to trade using a scalping strategy, you are going
to trade against market makers, specialists, and traders like the California
Raiders. Remember, 92 percent of scalpers lose money. If for
some unknown reason you have to trade for fractions, look for slowmoving
stocks with intraday trend. It may not be exciting—but boring
is better than broke.