I read this on the weekend.
I think its important for traders to read. Taking special note of:
- what I eventually came to learn, and this took time, was that what was really happening was a simple transfer of wealth, more often than not from the less intelligent and informed to the more so.
- I worked in a highly opaque market. There was no price ticker scrolling across our screens telling us what these bonds and derivatives we traded were worth
(The FX market is not opaque … most of the time.
But there are certain times when it is more opaque than others – I just posted on: USD/JPY in New Zealand this morning. Is the market opaque at 7 am in New Zealand on a Monday?)
And while we are on the subject – watch the movie Boiler Room. Not directly applicable to FX, but there are some relevant aspects in there. And its a good movie.