The Market Is a Queue
Price is the headline. Priority is the story. Who gets filled first matters as much as the level.
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Tick Size Sets Your Stop Distance
Stops live on a grid. If your stop is “between ticks,” it gets rounded into a different risk level than you planned.
Partial Fills Change Your Risk Math
A partial fill is a new position with a new plan. If you treat it like a “broken” order, you’ll improvise your way into oversized risk.
Market Orders Are Permission Slips
A market order is not “get me in.” It’s “fill me wherever you can.” In thin or fast markets, that’s expensive.
Liquidity Has Two Prices: Quote and Fill
The quote is what you see. The fill is what you actually buy. In fast markets, those are different numbers.
Spreads Widen When Certainty Dies
A tight spread is agreement. Volatility breaks agreement. Treat widening spreads as a risk signal, not bad luck.
Latency Is a Tax on Reactive Trading
The faster the move, the more your click becomes a donation.
Limit Orders Don’t Protect You From News
The ‘safe’ order type can be the one that leaves you chasing the worst fill.
Session Change Means a Different Market
Asia, London, New York aren’t time labels. They’re liquidity regimes.
Your Stop Is a Liquidity Signal
The market doesn’t know your stop, but it knows where stops usually are. Act accordingly.
Round Numbers Are Liquidity, Not Magic
Round levels aren’t mystical. They’re crowded. Crowds change the microstructure.
If You Can’t Measure Slippage, You Can’t Size
Stops and position size assume fills. Slippage is where the assumptions break.
Spread Is a Regime, Not a Constant
Spreads breathe. Treat them as a regime variable or you’ll keep sizing a market that no longer exists.
Exit Liquidity Matters More Than Entry
You can often get in. Getting out at your intended price is the real privilege.
Stops Cluster, Then Get Vacuumed
Most stops sit in the same obvious places. Price doesn’t need malice to find them.
Your Edge Must Survive the Worst 5 Minutes
A strategy that works until the first real shock isn’t an edge. It’s calm-weather cosplay.
The First Fill Lies
A partial fill at a great price can be bait. The rest of your size tells you the truth.
Backtests Underestimate Slippage Twice
Backtests pay the spread once and assume clean fills. Live trading pays it twice, plus a tax you didn’t model.
Liquidity Is a Switch, Not a Dial
In stress, liquidity doesn’t slowly fade. It can vanish. Your order becomes a search party.
Overnight Financing Changes the Game
If you hold overnight, you are trading a clock: financing can turn a flat trade into a losing trade.
Commission Sets Your Minimum Holding Period
Costs set the minimum distance your trade must travel. If price does not travel far enough, you lose by design.
Liquidity Providers Pull Quotes First
Before price moves, liquidity often disappears. The first move is the removal of quotes.
Latency Turns Stops into Worse Prices
In fast markets, latency is slippage. Your stop is executed in the future, not at the trigger.
Your Feed Defines Your Reality
In OTC markets, 'the price' is not universal. Your feed determines your triggers, fills, and disputes.
Last Price Is Not Tradable Price
The last price can be a single small trade. Your exit happens on the book, not on the print.
Rollovers Are Microstructure Events
Rollover is not just a fee. It is a liquidity and pricing event that can change fills and spikes.
Closing Prints Can Distort Signals
The close can print prices that are not representative of tradable flow. Your signals can anchor on a distorted number.
Session Opens Are Auctions, Not Trends
The open is price discovery, not a signal. Many 'breakouts' at the open are just an auction finding a range.
Market Impact Is Nonlinear
Doubling size more than doubles cost. Impact grows faster than your confidence.
Stop-Limits Fail Exactly When You Need Them
A stop-limit protects price, not survival. In a gap, it often protects nothing.
Order Type Is Part of Strategy
If you do not specify order types, you do not have an execution plan. You have a wish.
Depth Vanishes Before the Move
When price is about to jump, depth often disappears first. The book is not a promise.
Slippage Is a Regime, Not an Error
Slippage clusters. If you treat it as rare, your risk model is fiction.
Spread Expansion Is Your Real Stop
In fast markets, the spread becomes the real stop: it can hit you before price moves against you.
Bid/Ask Triggers Make Chart Stops Wrong
Stops trigger on bid/ask, not on the candle's mid or last price. Charts can lie about stop-outs.
A Touch Is Not a Fill
A chart 'touch' is not a fill. Fills only happen where executable liquidity exists.
If You Don’t Define ‘No Trade’, You Will Trade Noise
A trading plan without explicit ‘no trade’ rules becomes an engine that converts boredom into risk.
Stop-outs Are Feedback, Not Failure
A stop-out is information about volatility, invalidation quality, and regime, and ignoring that information is how you repeat the loss.
Overtrading Can Be Built Into the Strategy
If your rules generate too many ‘valid’ signals, you will overtrade by design; discipline won’t fix a strategy that fires on noise.
Filters Shrink Sample Size and Inflate Confidence
Every extra filter can make a backtest look smarter while making the result less trustworthy by starving the sample size.
Risk Limits Without Enforcement Are Fiction
If your risk limits depend on willpower, they will fail on the exact day they were designed for.
A Strategy Without a Kill Switch Is a Time Bomb
Every strategy eventually enters a regime where it doesn’t work; without a kill switch, you’ll keep trading it until damage forces you to stop.
Scaling Out Changes Your Strategy, Not Just Your Risk
Scaling out is not a neutral tweak: it rewires your payoff distribution and can quietly remove the winners that make the system work.
If You Can’t Explain the Contract, You Can’t Size It
If you don’t know the pip/tick value and notional exposure, your position size is a guess, and guesses become leverage.
Position Size Changes What You See
If your size makes normal volatility feel like danger, you will start hallucinating signals and managing from fear.
Stop Management Is Thesis Management
When you move a stop, you are redefining invalidation; if nothing changed in the thesis, moving the stop is just permission to be wrong longer.
Your Trade Lives Inside a Contract, Not a Chart
In OTC venues, your ‘fill’ is governed by broker terms; when it matters most, the contract can override the chart.
Financing Turns Positions Into Clocks
If your position pays negative carry, time is against you; financing converts ‘hold’ into a slow-loss trade even if price doesn’t move.
Different Instruments Have Different Physics
You can’t copy-paste one risk model across assets; each instrument has its own hours, liquidity, gap behavior, and contract rules.
Your P&L Attribution Is Usually Wrong
If you don’t separate edge from execution, sizing, and rule breaks, you will ‘fix’ the wrong thing and make the system worse.