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LOL good points;
but i respectfully think one needs both.
I have to use the easier one in some markets as you noted .......
Price Action Trading or Fundamental Analysis? Which is easier
- Thread starter easymon1
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LOL good points;
but i respectfully think one needs both.
I have to use the easier one in some markets as you noted .......
Hello Scataphagos,
I agree 1000%, on this what you said. I agree.
Traders fear uncertainty, and refused to accept the realty is that after entering a trade, there is a lot of work to do.
You have to play by ear and try your best per trade to make good real time decisions.
Traders would like to know everything and "be sure the trade will work out". Well, you can't get that. What you can know is (a) where buying has changed to selling and vice versa, (b) where support and resistance are.... when you can expect the market to reverse* with significant probability and favorable r/r. And if there is a breakout of S/R, that means something too... also significant probability and favorable r/r. Those are the things you can know.
Bottom Line... make a play on what you know. That's the best it's going to get.
KISS, baby.
*reverse... can be a big reversal or a small bounce. No way to know which it will turn out to be as at the start they both look the same.
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Traders would like to know everything and "be sure the trade will work out". Well, you can't get that. What you can know is (a) where buying has changed to selling and vice versa, (b) where support and resistance are.... when you can expect the market to reverse* with significant probability and favorable r/r. And if there is a breakout of S/R, that means something too... also significant probability and favorable r/r. Those are the things you can know.
Bottom Line... make a play on what you know. That's the best it's going to get.
KISS, baby.
*reverse... can be a big reversal or a small bounce. No way to know which it will turn out to be as at the start they both look the same.
Pardon for referencing my own post...
But this is FUNDAMENTAL to trading.
If one can't get his mind around this concept, likely he will not succeed. PERIOD!
I've tried all forms of trading except futures and commodities. I arrived at a successful formula for me. I do basic fundamental analysis and trend analysis for markets and sectors. Then I choose the stocks I prefer to trade in those sectors for fundamental reasons. I then use long term technical levels to determine price levels I like for entries and exits, and to determine if I'm in a bad position. Doing so also makes it easy to pull the trigger at those levels.
I do have a layer of short term trading on quality days that I use intraday ranges. But even then it's based on stocks that come our favorably on my fundamental analysis or the news cycle. So a special trade right now is front running any earnings reports on Cdn Oil plays. For several reasons including seasonality, and the possibility of bonus positives like dividend boosts.
There are exceptions like when broader markets do big reversals. On a correction I cut a lot or all positions and research what levels I'd love to buy stuff at. This worked really well in March 2020 because I had 11700-11900 as a buy area on the TSX and when it went straight down to I believe 11200 I put in a huge buy order end of day. The idea that the TSX should be valued at year 2010 levels was ridiculous and I saw it as the premium opportunity that it was.
Good Evening Scataphagos,Traders would like to know everything and "be sure the trade will work out". Well, you can't get that. What you can know is (a) where buying has changed to selling and vice versa, (b) where support and resistance are.... when you can expect the market to reverse* with significant probability and favorable r/r. And if there is a breakout of S/R, that means something too... also significant probability and favorable r/r. Those are the things you can know.
Bottom Line... make a play on what you know. That's the best it's going to get.
KISS, baby.
*reverse... can be a big reversal or a small bounce. No way to know which it will turn out to be as at the start they both look the same.
I just wanted to say to you sir, this is the best post I read on ET forum in the past 3 years I have been on this website everyday.
I have printed this out for my trading study binder and trading quotes.
Thank you said 1000 times you in a row.
Hello Scataphagos,
1000% agree. Yet so many traders spend so much time looking for exact results.
It is best to keep doing the best you can .
During Bull market a company with bad FA will go up most of time. Amazon for years made no profits and it went up.
TA, at least you have something you can attach rules, if a pattern fails, there is a time element. Whereas fundamental may take years to go up on continual good news.
Volume makes markets drive a trend and volume is TA.
TA, at least you have something you can attach rules, if a pattern fails, there is a time element. Whereas fundamental may take years to go up on continual good news.
Volume makes markets drive a trend and volume is TA.
I agree with your first two sentences, disagree with this one.
Volume can mean anything, volume can and mostly means nothing taken at face value.
TA volume indicator is the same nonsense as MA's and the plethora of other useless indicators, when you read it, you imagine shit in your head (not you personally).
Volume can be whatever your biased mind sees it as.
Volume can be churn, "ohh, but I see a buy signal, price and volume are rising".
Pfffft.
Edit: But I love volume, it's more stupid shit which is a nice red herring.
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TA skeptics don't believe/understand... Price TA works the same on all issues and in all time frames.
You can trade intraday off the 5-minute chart or swing trade off of daily charts. It's all the same. The charts show "what players are actually doing with their money... buying/selling... when/where". Our objective is to tune into that as best we can.
KISS, baby!
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