Quote from davelansing2004:
So Jack,
Just because we disagree on the value of using volume in the making of trading decisions means that always I'm wrong and will never make money in the markets? Does that mean that Seykota, Dennis, Schwartz, Weinstein, Baruch, Mark Fisher etc.. are "wrong" too? I know that those guys made millions in the market, how about you? I posted on this thread because Babak had the same questions regarding volume that I always had. Just because someone doesn't see your way of thinking doesn't mean that their wrong and you're right. You would think that after "50 years" in the market you would know that.
I am suggesting stuff about effectiveness and efficiency.
Saying that you are mistaken about volume is limited to your viewpoint on volume. I am not speaking to you vis a vis your historical record.
I am not speaking about the wizards and their relationship to volume and how this connection gets their trading done.
My view is that volume is a powerful addition to what anyone may be doing and if a person is using volume to advance his effectiveness and efficiency, then that person will be in a high velocity money making setting in all likelihood. This is a positive pro active viewpoint in the context of the substantive content of yourself and two others that share your mindset.
There is never any reason to believe many people see what I espouse and why should they even care about it. I am, personally, am unimportant. My views and their basis are pragmatically derived. That is a consideration, it turns out.
You are speaking of right and wrong. I am speaking of persons gaining more depth of understanding and as a consequence doing better in making money.
I also feel that it is true that by not considering volume, either logically or at all, a person can be stymied in his quest whatever it may be. When a person considers volume, by some standard (they can certainly choose it and I do not choose it), then I feel that they will advance their understanding of the market. Your common standard with Babak and davelansing, however, is not one for anyone to choose.
Making millions as a wizard is the normal routine for them. If you look at all the posters in this thread, perhaps not many of them have had the experience. I have been a lucky person in my trading efforts. So I have operated within the realm of success that is only across part of the range possible. I lack understanding of much of the range that people chat about here in their experience base. Because what I do has definite volume related limitations and because I am an amateur and limited to handling funds of others by part 208 E of NFA ,I cannot speak for the whole range of money velocities and absolute large values. I have never done over 7 digit one day net in my life but I have done 7 digit one day net operating at my volume limitations. I know I have limitations and I know what they are.
See if you can get off the black/white right/wrong perch for this thread. It is possible to look at opportunities in other than a go/no go manner.
When I suggest that you are making mistakes in your views on volume what I mean is that you are excluding yourself from opportunities that you cannot recognize by coming to faulty premature conclusions and sticking with them. Why would I mention it? Certainly it is not important to mention to others what they have overlooked as it is to mention it to you. You are different from them. If you, as well as Babak and davelansing, do consider some things, then you will have a new viewpoint that prepares you for going much further in your efforts.
Some of what I have stated here in this thread includes the following (in order of importance of potential application):
1. Volume determines the quality of a universe for making money in swing and position trading.
2. Daily volume ranges allows you to calibrate all the stocks in your universe with respect to their money velocity effectiveness and efficiency when they make movements.
3. Volume, as calibrated in your universe, gives you the timing for making trades in your universe ("Tomorrow's Newspaper Today" as it is named).
4. Volume, as an indicator, precedes price.
5. Monitoring potential volume defines where the control of price lies. This is the place to do analysis for decision making as a result of monitoring.
6. Ommissions of expected volume factors in cyclical sequences are flags that demand immediate trading attention. (What wasn't that?)
There are many more not mentioned.
I have not commented on anything to enlarge the scope of this thread. I am relying on others to scope and bound the thread for the benefit of Babak.
What if there was a discussion of other facets?
All I am saying to you, a person with outstanding potential, is to maybe consider two things: rethinking what you have as a viewpoint (and how you got there) and secondly, consider various other or new factors to replace those you now hold in your belief system.
It is my belief that the above paragraph applies to me as well and to anyone else on the path to success.
For making money, being right is not the most important thing. More often than is commonly realized "being right" often interfears with improving effectiveness, efficiency, and making the right decision at the right time.
Most of the ET thread content is about people assert that they are right and others are wrong. I believe that it is a different thing to comment on viewpoints that suggest something is not worth considering when in fact there are many reason to give consideration. It is better to consider and to come to the understanding that you do know what you know. To consider and not know what is going on is not a good way of operating.
As always it is necessary for a person to mentally digest and allign or reallign what they are considering. Knowing about and making proper use of the six items above will improve anyone's efforts. It is not right or wrong to do so.
