A message to some day traders.

[bloomberg1]

Is yesterday’s 1 day Apple chart randomly constructed or does it have a precise intended message of the future? Can you look at it, grab all the info, and predict accurately? That’s my question, please answer this question.

Yes random, all markets, but not all of the time. markets don't move in a straight line.

Can you open your mind to the idea that you can make money in random behaviors with risk techniques? Risk management..

It's not if the market is going to get there, it's how..

 

[Amahrix]

O.k, if I was day trading APPL this is how I would have tried to play it. Obviously I have the benefit of hindsight here - but this is a common setup, I have put on thousands of trades like this one over the years. Most of my profits are made from swing trading.

* Daily chart- price had reversed at resistance from the prior high and hit a trend line. I would bee looking for any bearish patterns on the smaller time frame.

*A gap fill had just completed which formed what appeared to be a head & shoulders top which is on the right side of a bear flag, confirmed with volume. My aim would be to enter an initial position at the same price level as the left shoulder, than add on more size on a break of 1st & 2nd trend line breaks and exit at the close.

* Here is a pattern that would have worked - I always assume about half of them wont work out. Trading from patterns allows me to take smaller defined risks to make significantly larger gains.

* Call it hocus pocus, I don't care. Many of these patterns trigger large parabolic breakouts. Patterns that are calendar, Fed, earnings, etc. driven I factor in as well. It gives me confidence to plant my positions and allows me to have asymmetrical reward to risk.
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I didn’t ask how you would have traded AAPL.

Looking at Apples chart yesterday, is it constructed randomly or did it carry a precise intended message?

 

[bloomberg1]

I didn’t ask how you would have traded AAPL if you were daytrading it.

Looking at Apples chart yesterday, is it primarily constructed randomly or did it carry a precise intended message?

Random, certainly from my perspective..

Just as indicies fell off after China cut meeting short, but no doubt some day trader's made some money on that news...if nimble enough

 

[Amahrix]

Random, certainly from my perspective..

Just as indicies fell off after China cut meeting short, but no doubt some day trader's made some money on that news...if nimble enough

Thank you, unless you are an Omniscient God, it was constructed randomly. These people are seeing human figurines in inkblots. They’re seeing animals in the clouds.

The longer you zoom out, the more signal you get. The less frequently you look at it, the more clarity you get. Data worshippers don’t get(understand)....data.

 

[bloomberg1]

Thank you, unless you are an Omniscient God, it was constructed randomly. These people are seeing human figurines in inkblots. They’re seeing animals in the clouds.

The longer you zoom out, the more signal you get. The less frequently you look at it, the more clarity you get. Data worshippers don’t get data.

I am always learning. But do agree lot of random stuff around for sure!
Never found technical S/R useful , but some do!

 

[Amahrix]

Just as indicies fell off after China cut meeting short, but no doubt some day trader's made some money on that news...if nimble enough

The traders that made money off that news were lucky to make money off that news. They should not attribute those profits to skill.

Why!? Right place, right time. But don’t tell them that, they realllly want to believe it’s because they’re smart.

 

[bloomberg1]

The traders that made money off that news were lucky to make money off that news. They should not attribute those profits to skill.

Why!? Right place, right time. But don’t tell them that, they realllly want to believe it’s because they’re smart.

Yep, lucky... Got the news in time made some points moved on not a long-term strategy though

 

[comagnum]

Random, certainly from my perspective..

Fair enough - it's not for everyone & certainly there are plenty of ways to do well without using chart patterns. Traders that do exceptionally well pin most of their success on their $ mgmt & mind set anyway. Entry signals are way over rated anyway - the exits are far more important.

 

[Amahrix]

Traders that do exceptionally well pin most of their success on their $ mgmt & mind set anyway.

Just because they say it, does not mean it is because of those skills. Ofc they won’t just tell you it’s more luck than skill; ego.

Success in trading is not about money management and not about profit.

It’s about survivability.

Think deeper. Survive long enough and you may experience the fortunes that luck brings to your door. And a hedge, in case luck never arrives.

 

[bloomberg1]

Fair enough - it's not for everyone & certainly there are plenty of ways to do well without using chart patterns. Traders that do exceptionally well pin most of their success on their $ mgmt & mind set anyway. Entry signals are way over rated anyway - the exits are far more important.

Agree. Has to be because losses do occur!!