Thanks. I want to put one of the charts on my computer screen as wallpaper!Put these charts on your wall for reference the next time you think…
- Something is “oversold” or “at support” and has to go back up…
- Something is “overbought” and can’t go higher…
- It can’t go to 0…
- It is certain to default…
Put these charts on your wall for reference the next time you think… Something is “oversold”
- Thread starter Chuck Krug
- Start date
If you find that your observations are not working with respect to PA, then you are simply not there yet. Unless you can see the future, all pertinent data is lagging but if PA doesn't have to replicate but just rhyme to formulate a trade plan with positive expectancy...it takes the time it takes. For most of it it took years.Thanks. All TA are lagging and predictions seemed to be just like extrapolation, sometimes they work but most time they don't. Perhaps the key is to figure out when they do and when they don't.
I actually started to study charts based on some coaching from some of you. I have been staring at them real time lately, but so far, especially the intraday kind. However, I am beginning to understand some patterns, as they seemed to reflect human behaviors.
Regards,
These charts show exactly why short-term trading ..i.e.....seconds..minutes..hours is so much more profitable that all that longterm holding BS. A good daytrader would have never got caught in all that those BS drawdowns. He places his trades and stops and if market doesn't go his way in a reasonable amount of time he is out faster than crap moves thru a goose or his stop gets hit or he changes his premise based on unfolding PA. None of that BS weeks and weeks of drawdown where every line on the chart keeps getting broken. He just follows emerging PA until it does differently than what he extrapolates based on the odds and the PA unfolding in front of his eyeballs. Does he get it wrong sometimes? Of course. On average he will be wrong 4 out of 10 trades. But he don't have all those monster drawdowns..waiting..hoping..screaming..praying..breaking things..plus hollering wife...selling car..charging CC ...fighting brokers..margin calls...
By end of day he is out of the scuffle. Either with profit or loss. He gets his report card every day. He knows exactly where he stands. No sleepless nights. Hurst talks about it in his book. Much much more potential in short-term trading than longterm BS. Traders have been fed a line by the investing world and they have swallowed it hook..line..and SINKER..especially if they tried their hand at short-term trading and failed. It takes a long time to become a really good short-term trader. But once you do.........
Most are too lazy to study..observe..practice..learn..and implement.
Most are pyschologically not prepared for short-term trading.
Short-term trading is high performance activity. Requires pyschological prep. Most bypass the psychology factor thinking they ONLY need a good system. However, psychology enters the picture BIG TIME the second a trader executes.
All rules can be broken except for the "golden rule." Entries..SL's..PT may ALL be adjustible. IF the market is adjustible. Do you see the market as adjustible? Entries..SL's ..PT's can all be set in concrete IF you think the market is CERTAIN. Or you may employ the later because YOU VIEW the market as uncertain and you want to give some certainty to your trading. So...do you see the market as certain?
So what is the market? Certain or uncertain? How YOU SEE it determines HOW you trade it. How it REALLY IS determines your profit or loss.
Bye
By end of day he is out of the scuffle. Either with profit or loss. He gets his report card every day. He knows exactly where he stands. No sleepless nights. Hurst talks about it in his book. Much much more potential in short-term trading than longterm BS. Traders have been fed a line by the investing world and they have swallowed it hook..line..and SINKER..especially if they tried their hand at short-term trading and failed. It takes a long time to become a really good short-term trader. But once you do.........
Most are too lazy to study..observe..practice..learn..and implement.
Most are pyschologically not prepared for short-term trading.
Short-term trading is high performance activity. Requires pyschological prep. Most bypass the psychology factor thinking they ONLY need a good system. However, psychology enters the picture BIG TIME the second a trader executes.
All rules can be broken except for the "golden rule." Entries..SL's..PT may ALL be adjustible. IF the market is adjustible. Do you see the market as adjustible? Entries..SL's ..PT's can all be set in concrete IF you think the market is CERTAIN. Or you may employ the later because YOU VIEW the market as uncertain and you want to give some certainty to your trading. So...do you see the market as certain?
So what is the market? Certain or uncertain? How YOU SEE it determines HOW you trade it. How it REALLY IS determines your profit or loss.
Bye
These charts show exactly why short-term trading ..i.e.....seconds..minutes..hours is so much more profitable that all that longterm holding BS.
Swing/trend/positional/fundamentals traders made a killing shorting these companies. These charts are just a glimpse into the many companies that go down in flames every year. No day trader trying to ride these same stocks down could have had comparable performance due to the their trading costs, missing out on all the overnight gap downs, loses from whipsaws in trying to get positioned every day, and would have to put 1,000 times more trading time to capture a good piece of these moves.
Swing/trend/positional/fundamentals traders made a killing shorting these companies. These charts are just a glimpse into the many companies that go down in flames every year. No day trader trying to ride these same stocks down could have had comparable performance due to the their trading costs, missing out on all the overnight gap downs, loses from whipsaws in trying to get positioned every day, and would have to put 1,000 times more trading time to capture a good piece of these moves.
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And his sitting tight that caused him to go broke 4 times was it? Huge amounts pissed away.
Livermore is considered the greatest trader of all times in academia. I don't recall any day traders in the 1929 crash being asked by the Fed to save the market.
Livermore was up $100M(1929), that's $13.7B adjusted for present, at his apex. When he died he left his family a fortune for his family $5M (1940) or $88M adjusted for present. The richest traders of all times top 10 list all held long term positions.
http://www.investopedia.com/article...15/worlds-10-most-famous-traders-all-time.asp
Day Traders of the 20's - yea, there were troves of them.
Livermore is considered the greatest trader of all times in academia. I don't recall any day traders in the 1929 crash being asked by the Fed to save the market.
Livermore was up $100M(1929), that's $13.7B adjusted for present, at his apex. When he died he left his family a fortune for his family $5M (1940) or $88M adjusted for present. The richest traders of all times top 10 list all held long term positions.
http://www.investopedia.com/article...15/worlds-10-most-famous-traders-all-time.asp
Day Traders of the 20's - yea, there were troves of them.
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Well he was a daytrader too. In the bucket shops. He cleaned house. Just got to be known and they wouldn't do business with him so he had to go the other route. When he couldn't make it using regular brokerages he had to resort back to the daytrading the bucket shops to get up another stake. He was a wiz at it. If he lived in our times with the electronic trading i think he would have been a daytrader. That was his first passion. He was forced to become otherwise. And if you are a longterm position trader yes you gotta "sit tight" when right but you also gotta know when to get out when WRONG. That was his weakness. Too often he would sit when he should have jumped ship. He was a great trader.
Short term trading whether days...a few weeks...or a day..an hour..or minutes has the potential to compound profits that longterm trading (months) cannot. Every PB is an opportunity for compounding. Hurst discusses these concepts.
Short term trading whether days...a few weeks...or a day..an hour..or minutes has the potential to compound profits that longterm trading (months) cannot. Every PB is an opportunity for compounding. Hurst discusses these concepts.
I would think that when traders plot S&R points and/or overbought and oversold points, they're plotting such areas as potential areas for said action.