Has anyone ever made a trade WITHOUT looking at a chart first?
I bet the answer to that question is very-very few. Now i said: Made a trade, not an investment, totally different ball game.
When a trade is made it is surely either one of two processes, one being a pure guess derived from looking at a chart and assuming you know where price is headed next. This is speculation in it's rawest form. Correct?
The other way is taking a trade based on looking at a chart and making another speculation of where price is headed next, same as before. BUT, this time when you looked at the chart, there was no raw guessing. You now do not guess, you PREDICT where price is headed. This is being far less speculative and more precise in your speculations. Add to this second process the PREDICTION where if indeed you are wrong, (and at times surely you will be), you will pre-place the prediction of where the STOP will be entered. Already it sounds like the game is less stressful just reading the above.....
The gist of all this is simply this: there are just a very few REAL spots on the chart to make "ALL" the decisions that are even possible. Forget the tons and tons of esoteric whiz-bang puffed rice indicators which are just derivatives of a few basic entry spots anyway.
What are the basic entry spots? That is the QUESTION?
Here are a few of my thoughts to the question.
Pivot Points, Moving Average crosses, Range Breakouts, Hooks (for continuations) etc. MOST, MOST other stuff comes from those basic, basic simple stuff.
That to me is why the basic stuff WORKS, because it is the nuts and bolts of the entire game......surely a lot of other thinkers will agree and disagree. .....
Case in point about other indicators being a derivative of something called by a different name. support and resistance is really nothing but pivot points, etc.
I bet the answer to that question is very-very few. Now i said: Made a trade, not an investment, totally different ball game.
When a trade is made it is surely either one of two processes, one being a pure guess derived from looking at a chart and assuming you know where price is headed next. This is speculation in it's rawest form. Correct?
The other way is taking a trade based on looking at a chart and making another speculation of where price is headed next, same as before. BUT, this time when you looked at the chart, there was no raw guessing. You now do not guess, you PREDICT where price is headed. This is being far less speculative and more precise in your speculations. Add to this second process the PREDICTION where if indeed you are wrong, (and at times surely you will be), you will pre-place the prediction of where the STOP will be entered. Already it sounds like the game is less stressful just reading the above.....
The gist of all this is simply this: there are just a very few REAL spots on the chart to make "ALL" the decisions that are even possible. Forget the tons and tons of esoteric whiz-bang puffed rice indicators which are just derivatives of a few basic entry spots anyway.
What are the basic entry spots? That is the QUESTION?
Here are a few of my thoughts to the question.
Pivot Points, Moving Average crosses, Range Breakouts, Hooks (for continuations) etc. MOST, MOST other stuff comes from those basic, basic simple stuff.
That to me is why the basic stuff WORKS, because it is the nuts and bolts of the entire game......surely a lot of other thinkers will agree and disagree. .....
Case in point about other indicators being a derivative of something called by a different name. support and resistance is really nothing but pivot points, etc.
