Is Daytrading a Random Event?

[daniel_m]

Originally posted by FasterPussycat



cmx1, l@@k again. there is gold in them there charts.

them THAR charts..

 

[cmz1]

a stock is 20 to 20.05 trending up on good volume. youre a daytrader and you go long. Fidelity or one of a million other hedgies or institutions decides to unload their position. the stock falls out of bed by the time you get yourself out.

What's a "great" trader going to do. My ass if he's going to pick the bottom. This is the type of event that goes on all day. It is RANDOM not PREDICTABLE.

 

[FasterPussycat]

(i have started drinking heavily)

 

[daniel_m]

Originally posted by cmz1
a stock is 20 to 20.05 trending up on good volume. youre a daytrader and you go long. Fidelity or one of a million other hedgies or institutions decides to unload their position. the stock falls out of bed by the time you get yourself out.

What's a "great" trader going to do. My ass if he's going to pick the bottom. This is the type of event that goes on all day. It is RANDOM not PREDICTABLE.

I'll be there goin' short right along with it!

What do you mean "what's a trader going to do"? You just get out! Set a mental stop, and just get out. How simple! How many shares do you think we carry? Getting out's never really a problem.

 

[FasterPussycat]

you can still be net positive with good trade management.

comments...

 

[sabena]

CMZ1,


Yes, those actions from institutions are
random but that does not mean that your
trading results have to be random...

If you want to eliminate that factor as
much as possible, just stick with the
most liquid issues !

 

[FasterPussycat]

i dont no how anyone can l@@k at daily charts and tell me there is no trend there to be exploited. i mean cmon..it';s right there. short bterm trends all over the place

 

[daniel_m]

Originally posted by FasterPussycat
(i have started drinking heavily)

And listening to The Cathouse, no doubt!!

 

[FasterPussycat]

actually bad company on the jute. do you know them?

good lovin gone bad.

 

[CartelTrader]

I can say from experience that Daytrading without rules and without an understanding of the forces at work within the market for stocks, options or any other traded instrument, IS A RANDOM EVENT.

If on the other hand you are using a charting system or a tape system where you have an understanding of support, resistance, momentum, Fibonacci, Bollinger Bands, MACD and other indicators you are a professional.

This is true for swing trading also. You will be amazed at how predictable human nature and the fluctuation in stock prices can be. Again if you approach it in a professional manner and make your own decisions based on your research and experience.

And for the record markets are inefficient and that is why we have the possibility of making a buck out of this.