Today, for once I got to play the market maker side of the forex game. For the past few months, I found myself staring at charts and indicators hoping to come with a working trading strategy that will work most of the time. All these while, I was playing the role of the price taker. Today, when I got to be a price maker, I saw how erratic the market can become. So often during today's trading session I saw the bid price going higher than the offer price. Weird things like this only happens in this virtual market which is filled with people who have no idea what numbers they are keying in. Myself inclusive sometimes. Every time the bid price goes higher than the offer price, (which is very often) I tell myself that this time I am going to arbitrage all the way. It's not as easy as I thought. Arbitrage once, arbitrage twice, and I got trigger happy and I forgot that I was suppose to guard myself against hits. I forgot to change my price quotes and I got hit. Then there is also the technical problem and the problems of figures. In the end, by the time I got an idea of what is going on, we were already making a net loss. Maybe I'm just not fast enough.
Lessons learned. Faster minds and even faster fingers win.
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