Q&A by Don Bright
MARKET MECHANICS MUSINGS
You have mentioned “market mechanics” on more than one occasion. Are you referring to the actual mechanics of trading, like computer use? Or how one part of the market affects another? I would appreciate any light you can shed on this. — iowawin
You may have chatted with my traders who attended our training classes. I have focused for years on explaining how and why the markets move, both intraday and over the time of a short-term (few days, to a few weeks) trade. And yes, I can understand why you asked about the actual order entry.
Sir Isaac Newton’s words, “For every action, there is an equal and opposite reaction,” come to mind when I try to explain overall market mechanics — perhaps not always “opposite,” but maybe offset. For example, as most of us know, the futures are the leading indicators for exchange traded funds (ETFs) and equities.