Best strategies to start trading

[trustedsource]

oh yeah humility and ego..so romantically masculine..bahahha. it was a longterm ma cross along with some eggs frying on the macd sandwhich and some stoicasticoratti

 

[padutrader]

I am of the opinion that technical analysis is not reliable. Can anyone change my mind on that?

i am not going to try.......to change your mind....if you think it is not reliable, why do you want someone, to change your mind.

but technical analysis is tool and a tool is only as good as the craftsman holding it.

market moves because of buyers and sellers.

you have to figure out who is stronger.

if you cannot, you can blame the tool.....and instead of putting in the time to figure it out, ask someone in a forum to explain

do not search for some pattern.......read between the lines.... the patterns.

i can explain it but it will take a whole book.....and there is enough of that in this world.

face to face i can explain it 10 minutes .....but i cannot make you understand it or make you have confidence in what i am explaining.

it took me 12 years of study and active trading to understand.

who is committed enough ?

 

[padutrader]

For example, if you run a backtest in the SPY etf from 1993 to present, you will find that buying after 3 consecutive lower closes on the daily chart and holding 3 days, outperforms buying after 3 consecutive higher closes and holding 3 days.

as you say there are hundreds of these .....but it should be obvious that sellers are stronger in the above mentioned scenario.
in every transaction there are buyers and sellers interacting, to form the basis, of what is referred to as market action

 

[padutrader]

This all just seems so random.

why did you start trading?
i started trading because i realised that that market moves not because of randomness but it is moved by men
if someone wants to sell, someone else has to take the other side of the transaction.this is not randomness.
you may not understand what is going on but just because of your deficiency, it does not mean it is random.

but if you are convinced it is random then just find something else to do.

i was convinced other wise but it still took me 12 years to understand what drives markets.....i do not think it is randomness

 

[R1234]

I have a business that makes returns between 40-60% usually.

Forget about trading. When your business is this good why bother with market speculation?
If I were you I'd re-invest the profits and scale the crap out of the business, whatever it might be.

 

[padutrader]

You have about a 47% chance of doubling your money instantly with roulette if you put it all on black. Also a 53% chance of losing it all. High risk = high reward.

you cannot bet with the house in roulette.
but in markets you can bet with the house.

 

[padutrader]

When your business is this good why bother with market speculation?

it is good to diversify.....
but if you are convinced it is random,then forget about it.
do not ask to be convinced otherwise.
that would be sheer folly

 

[ironchef]

You present as an example a news report, one was known would cause highly volatile movements. So you say random, but was it? The market tried going down, it met an opposing force greater than it, turned around, and proceeded in the direction of that greater force, which it will continue to, until it meets a force equal to or greater than it.

No offense sir, what you described is what I learned in high school physics on Brownian motion.

 

[ironchef]

Forget about trading. When your business is this good why bother with market speculation?
If I were you I'd re-invest the profits and scale the crap out of the business, whatever it might be.

Totally agree. Why would someone who made 40-60% profit in his/her business wants to trade instead of trying to scale it up? Who on ET made 40-60% profit year in year out trading?

 

[ironchef]

it is good to diversify.....
but if you are convinced it is random,then forget about it.
do not ask to be convinced otherwise.
that would be sheer folly

If you stumble into a business that makes 40-60% a year, why do you want to diversify now?

If you already make millions a year with that 40-60% profit, and want to diversify, you don't ask ET how to trade, you talk to a private banker or an investment banker in Goldman.