Discretionary vs Mechanical Trading Benefits and cons?

[lovethetrade]

When the algos, AI etc, can buy at the exact start of a trend and sell at the very top, I'll concede defeat. But until that day, I ask, how can they do any better than enter early in a trend and exit near the end of that trend, which (some) humans have been doing since markets began.

But having all the information in the world does not insure that the algo's entry will be correct or better than that made by the human.

You don't know what you're talking about. Back to the drawing board for you my friend.

 

[learner2007]

You don't know what you're talking about. Just in case you didn't know.

OK, thanks for letting me know that.

 

[lovethetrade]

OK, thanks for letting me know that.

I'll always be honest with you and I reckon that's a good thing.

 

[learner2007]

I'll always be honest with you and I reckon that's a good thing.

I don't know if it's a good thing or not, as what you said has encouraged me to shoot myself!

 

[lovethetrade]

I don't know if it's a good thing or not, as what you said has encouraged me to shoot myself!

It's not that bad, you just need to stop preaching misinformation and keep working at it.

 

[learner2007]

It's not that bad, you just need to stop preaching misinformation and keep working at it.

OK, I'll try to get through the rest of my life while not knowing what I'm talking about as you so kindly pointed out.

 

[Turveyd]

Below is what I said in reply to a similar point in another thread.

IMHO the most significant point is the price movement itself, and not who's buying/selling. And the point of my previous reply was simply that within the herd that buys at/near tops and sells at/near bottoms you can find GS just as well as somebody's Granny (no offense meant to any Grannies out there).
Just as many are, perhaps you are overly concerned about big orders believing that big equals smart guys, and that as the smart guys have all available information at their fingertips, they must be right!! Well, I can't count the times I heard security analysts scream "The market's got it all wrong".
Just buy/sell the trend, and you'll be with the smart guys, and a few smart Grannies too!!

Disagree, you want to follow the Pro's and fade the Retail money.

Buy/sell the trend is easy to say, hard to do, where every pull back could be a trend reversal which you aim to buy, exposing yourself to that risk..

 

[learner2007]

you want to follow the Pro's

Yes, but too many automatically attach the title of Pro to any bank, broker or hedge fund just because they trade in size. Do all such traders constantly make profits to where they could be called Pro? Is somebody's Granny who makes a living by trading not a Pro?

Buy/sell the trend is easy to say, hard to do

Hard to learn how to do, and after that not really that hard to do.

every pull back could be a trend reversal

Reading if that is the case or not can be learned.

 

[Sprout]

Which is better for you and why?

Discretionary works forever because you consistently adapt but not mechanical?

What are your thoughts?

The difference is where one invests trust.

Do you invest to trust in yourself or not?

The first can build the second. The second relies on the differentiated mind of the first.

The better the first, the better the second.

Appreciating the ecology of nature will determine which to invest in. Invest in millions of years of evolution/Creation or couple of decades of AI/ML research?

 

[Turveyd]

Yes, but too many automatically attach the title of Pro to any bank, broker or hedge fund just because they trade in size. Do all such traders constantly make profits to where they could be called Pro? Is somebody's Granny who makes a living by trading not a Pro?

Hard to learn how to do, and after that not really that hard to do.

Reading if that is the case or not can be learned.

I'm profitable mostly, took a longgggg time to crack, but I'd put money on that your not.