Short term trading

[MrScalper]

I've seen that said, too, but have no idea whether it's true (though I certainly found Comagnum's post just above this one interesting). I probably effectively "control my emotions" better than about 99% of people not because of my gender but because I have Asperger's syndrome, and am really very "low-emotion" to start with, so there isn't an awful lot there to "control" in the first place. I think that probably makes me well-suited to trading, overall. Funded account trading is no different from demo, to me: I have no emotional attachment to individual results at all - it's all just statistics, probability-functions and risk management, to me.

I must commend you as an AS person with a Ph.D, and it explains some of your stated thoughts about trading and the associated learning curve.

To cut to the chase, if you are interested we will only talk about NQ, and in line with the thread title, short term trading with NQ?

 

[Xela]

I must commend you as an AS person with a Ph.D

Thanks for that, but the incidence of Aspie's among PhD-holders is rather high, you know (and among university professors the Aspie-incidence is very high, compared with that among the general population) so I was probably just playing to my advantages, there.

 

[MrScalper]

Thanks for that, but the incidence of Aspie's among PhD-holders is rather high, you know (and among university professors the Aspie-incidence is very high, compared with that among the general population) so I was probably just playing to my advantages, there.

You learn something new every day!

I do not like talking about the past, as looking back now the majority of it was just wasted time, nor do I think that any person out there (selling something trading related) has anything of real value to offer anyone.

It can be very advantageous to come up with your own way of looking at the markets, and if the "stats" mentioned by most are actually true, of which I can not say as I do not have any data to validate same, then why would any person in their right mind waste a lot of time and money when the "stats" say that 95% of those who try (based on readily available learning information) will fail.

I much prefer to talk about what matters most, and in this instance that is short term trading with NQ futures.

 

[fordewind]

Hi a few questions to all you experienced traders. i would appreciate any input

1. "momentum precedes price" is a well known theory. So with that in mind wouldn't a short term move based on this be more of an edge in relation to milking the effect of that momentum?

2. What are traders called who buy the daily chart on Day 1 and then sell 1 to 2 days later? ie not scalpers and not swing traders. So what category?

3. Are there any well known traders who trade as above?

Thank you kindly

Momentum is more important then trend.Larry Williams siad that,not me.

 

[MrScalper]

Momentum is more important then trend.Larry Williams siad that,not me.

The only Williams that I know of that is worth mentioning, is Andy Williams.

One of his best numbers was..
Can't Get Used to Losing You

 

[fordewind]

The only Williams that I know of that is worth mentioning, is Andy Williams.

One of his best numbers was..
Can't Get Used to Losing You

The guy who parlayed $10K to $1.1M is also worth listening,i think.

 

[MrScalper]

The guy who parlayed $10K to $1.1M is also worth listening,i think.

Nah, dreamers stuff really.

Forget about all the hype and big shots, as it will do nothing for you but waste your time and cost you money.

I heard it said once that the "Queen of England has to make a sh*t also"

 

[volpri]

Momentum is related to time. In the case of the markets it is the speed of the movement of price. Momentum is a synonym for speed. It is the tempo or pace of movement. It is related to time, or connected to time, because "speed" is the rate of motion over a given period of time. When you say i was going 50 miles per hour you are talking about your speed. Distance covered over a time period. Velocity is speed in a certain direction. Speed itself is unrelated to direction. Velocity needs two characteristics to be defined as velocity. The first is speed. The second is direction. Velocity is the rate of change of an objects position with respect to a frame of reference. In short velocity is speed in a certain direction. Acceleration is the rate of change of velocity with respect to time. So basically when we are talking about speed we are talking about momentum. When a football team moves the football down the field at 10, 20, 30 yards a clip and in back to back plays we say the momentum is with that team. They marched down the field 90 yards on three minutes as opposed to taking 20 minutes to accomplish the same distance covered. Just remember speed and momentum are basically the same thing. Now back to the markets. What we are really talking about is acceleration. Acceleration, remember, is the rate of change of velocity (speed in a certain direction) with respect to time. When price moves towards a frame of reference its can move fast or slow. It can also accelerate. For instance, in. B.O. Of a range it may start slow. Then its speed build and price begins to change more rapidly over a same period of time. Say it takes 30 second for the ES to head north 6 ticks (speed in a certain direction or velocity) but in the next 30 seconds it goes 10 ticks up. It is accelerating (the rate of change of velocity with respect to time). Now back to the orginal statement that "momentum precedes price." That is the same as saying speed precedes price as momentum is a synonym for speed. And speed in itself is unrelated to direction. So, what we are really talking about in price movement is velocity (speed or momentum in a certain direction). However, velocity needs vector (direction) and it needs magnitude (i.e. speed). Therefore the original statement is wrong. Instead of momentum precedes price it should be acceleration precedes price. How can that be? How can we get acceleration before price movement. You can and you can't. Sometimes we cannot see the forest for the trees. In practical terms whoever came up with that statement really mean't to say acceleration precedes price. Here is a practical example. Price has been trading in a range for 1 hour. Up and down. Down and up. Suddenly there is a B.O. north. At first it starts slow. Traders are watching. They don't know if it will be failed B.O. or a successful B.O. In a failed B.O. price gets sucked right back into the range usually after 2 or 3 bars. In this case lets say the B.O. starts slow. Then suddenly price "spikes" sharply (i.e. the rate of change of the velocity...speed in a certain direction with respect to time). 10 seconds later it spikes even more sharply. Now it is accelerating (the rate of change of the velocity is increasing). That is, price travels further in the last 10 seconds as compared or contrasted to the previous 10 seconds. This is Leg 1 of price move. Then a PB takes place. The velocity slows down during the Pb hence the acceleration slows down. Then price starts back up and accelerates again and moves quickly up 15 ticks. This becomes leg 2 of the move up. So what we have is at the begining of this move (b.o.leg 1) the price changed. So, price preceded acceleration. Then the velocity of price sped up (acceleration). Then in the P.b. Acceleration SLOWED down. Then price takes off again for the second leg 15 ticks. In effect acceleration (the increase thereof in leg 1 and the decrease thereof in leg two PRECEDED THE 15 tick price move. So basically, what this is saying is anytime you see acceleration in velocity the probability is higher that you will see more price movement in that direction. Hence acceleration precedes price. However, not always because it could be argued markets don't strictly adhere to the laws of motion as physical objects do. But there is enough correlation to put probability in a traders favor. Volume is another subject.