neither TA not FA?

Quote from MAESTRO:

Actually, there is a third way! It's called "Mathematical Psychology". No TA, no FA just "hearding" and "flocking" and the methods that capture behavioral patterns without using prices or news. I have been doing this for the last 15 years and to me it is the only way to trade.

Cheers,
MAESTRO
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Maestro,

Can you send some reading my way? I'd like to learn more... thanks
 
There are successful option traders that rely exclusively on position (e.g. condor) management from open to closing, rolling legs based only on current greeks' values.
 
Quote from Pizzaboy:

The herd has nothing to do with it. It's the most money that controls direction. This most money can be one person. Therefore, TA makes no sense as you can't predict the whims of whomever controls the most money in the trade at any given time. Sorry, but this is fact. 1000 traders with 500 each, one trader with one million-- one million trader decides to go long with all his capital, 500 dollar traders all go short as a herd. The market goes up regardless of what the herd does. Right? If so, I have just proven TA to be nonsense.
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That's exactly right.

Why don't you open a brokerage account?
 
Quote from bone:

Highly correlated instruments. There is no 'holy grail', of course, but making trading decisions based upon the behavior of highly correlated instruments is a very powerful and woefully under-utilized technique.

And the best ones have never been mentioned here on ET.

Ever.
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Care to mention them or was that just a tease? :p
 
Quote from Kyoto:

You little peeps. Information is how trades are made in the real world. Not looking at the past. Seriously, no wonder most of you lose.
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Hi, one of the little peeps here. No matter what anyone does, it will show on the price chart. The hard right edge, some call it. Without the past, there is no way to determine benchmarks for the future.

They are selling pounds and buying dollars right now. I don't know who "they" are, nor do I need to.:)
 
Quote from MAESTRO:

Actually, there is a third way! It's called "Mathematical Psychology". No TA, no FA just "hearding" and "flocking" and the methods that capture behavioral patterns without using prices or news. I have been doing this for the last 15 years and to me it is the only way to trade.

Cheers,
MAESTRO
More...

The word "mathematical" in the title inherently suggests a technical component. If you use data, it can be placed into a graph, and that graph is TA.
 
Quote from Pizzaboy:

The herd has nothing to do with it. It's the most money that controls direction. This most money can be one person. Therefore, TA makes no sense as you can't predict the whims of whomever controls the most money in the trade at any given time. Sorry, but this is fact. 1000 traders with 500 each, one trader with one million-- one million trader decides to go long with all his capital, 500 dollar traders all go short as a herd. The market goes up regardless of what the herd does. Right? If so, I have just proven TA to be nonsense.
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If the man with a mil moves the price, it will be seen on a chart. If he moves it past a previous high on that chart, some would consider that a "breakout". Some might use a range to verify that the breakout has legs, and some will act on that until they have a reason not to.
 
Quote from i_c_fed_people:

Hi.
Yes, in general I do think it is just a matter of definitions.
People would claim not to use TA, but if you sat next to them and saw what they did, there is a good chance that, in you opinion, it most definitely IS TA.

However, in the case of the t2w guy, I really dont get that impression.

As for 'just asking him'...well....I did!
He simply PM'd me a story about a jewel dealer or something!

He's not a 'friend' at all unfortunately.
Over the years after spening too much time on trading forums I think i've built up a good radar for who is 'all talk' and who can likely walk the walk. This guy got my attention, hence my interest in his posts and my communication with him.

I generally completely ignore cryptic posters. I think they are purposely 'saying nothing' in order to look mysterious amnd unique for the sake of it, but not this time.

It's a shame though that he couldn't have given me some more help. I mean, even if he came straight out with it and told me what he was using, surely i'd still have to put a lot of work into it and it wouldn't just guarantee me riches!

another quote from him:
"How can you trade against the herd if you are running with them?

The surest method will place you next to the herd when they are right and on the other side of their trades when they are wrong! If you ever wonder who is on the other side of your trades when you are wrong I can assure you that it is probably me or someone just like me and when you are right we will have usually entered well before you, that I know for a fact, simply from what you have told me!

Successful trading is a conventional business, you are simply looking for exploitable opportunities to add value. One of the reasons that it can take years to become successful is that people often need time to develop the required business accumen.

Clear thinking, rather than delusional fantasies, must be your guiding beacon"
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Want help, put up a price chart. Look at it. Price will move, pull back, move, and pull back. If it moves, and pulls back before it penetrates the last peak, see if it does the same thing in the other direction, if so, that is consolidation.

It not, it is direction. Act on it as you see fit.
 
Id like to learn how to trade profitably - been studying for a few months and demo trading ; I guess most people use TA to trade, and most people lose.
However, I do think some people make money from trading from charts, but they are few and far between.

I can understand trading based on fundamentals, but does that mean that you have to be a long term/swing type trader?
You cant daytrade using fundementals, can you>??

I get the impression that those making money are using something that I haven't even heard of or been introduced too.

I think those that make money daytrading are making their own markets from what I gather and 'earning the spread' - something I wish I understood better.

Do you need to be a marketmaker to earn the spread?
Whats the risk in trading in such a way?
how do you do it? Is it easy?
Is it like, if the spread of a stock is 88.50 / 88.56, you put a limit order in to buy at 88.51 and a limit order in to sell at 88.55?? Is that earning the spread??
This newbie would like to see a video of someone 'earning the spread'.
 
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