In this month's SFO Magazine there is an article called Trading and Gambling - More Similar Than You May Like to Admit which covers the same material and concepts that are in the article Is Trading Gambling? and the topic Gambling vs Trading.

What I found confusing about the SFO Magazine article was the table at the bottom of page 58. I think that there is an ordering (typing?) error in this table - unless of course I have misunderstood what is going on. Either the first column should read and repeat 100, 400, 1000 OR the second column should read and repeat 1.5%, 5%, 15%.

I have been unable, so far, to find an error reporting mechanism on the SFO site but will report again if I can confirm this.

add to that an article I wrote but SFO turned me down for I did not discuss with the editorial before trying to get published.
http://www.tradingclinic.com/downloads/liquiditymirage/liquiditymirage.doc

SFO's advertisers don't want to see that sort of "unpatriotic doomsday" stuff next to their invitations to make-a-killing-in-the-stock-market adverts.

At the end you wrote:

quote:

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Multiple sell orders tripped stop loss selling which in turn triggered automated momentum system trades creating a slide that at times represented a disorderly market...

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Have you read The Anatomy of a Spike? I found that seeing how the orders flowed during a significant spike on light volume was very educational and ties in with your liquidity mirage.

And your final sentence currently reads:

quote:

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One day there will temporarily be no counterparty to the opposite side and therein lies The Liquidity Mirage.

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The exchanges artificially create these situations with the limit-lock rules.

good example in minutea. there are in fact many more examples than people realise. Current limits on dow are 1100 2150 and 3250 points. new levels will be calculated on July 1st