Quote from Trader666:
Actually you made NINE trades to accomplish your robust -24%.
I think the trading contest had a start and a finish. Once started you were in the contest. I believe that when the contest ended I was inactive and had a contestant result. I have been told it was -24%. For a while the percent diclined to -26%. Now it is back to -24%.
There are many blogs which comment on my trading and my posts and my post's quality and, moreso, their quantity. Most are negative owing to the vantagepoint of the producers. Here Trader666 does his thing as he has for years and years. He is phenomenal.
The Stochastics from Lane's work was a very early contribution and his Stochastics is very impressive and is impressive in many ways. He followed Dow who will also be remembered for many contributions. Some things are timeless. Stochastics is one of them.
Stochastics and MACD are classic renditions in thinking by Lane and Appel, respectively, to deal with the sentiment of markets. The former worked with percents and the latter worked in absolutes. Both took into account the periodicity of the markets and they used more than one fractal concurrently. By knowing at all times the market sentiment, a person may successfully be in the market on the right side of the market. Both used simple algebraic approaches involving averages. Dow preceded them in even a simpler manner.
There is a myth related to indicators regarding whether or not they lag. The myth is founded on how averaging is down and, unfortunately, causes these people who deploy the myth to miss the point of how signals from any indicator works.
Another almost universal myth of trading follows closely on the heels of the above myth. Somewhere somehow at some point, a thought was created and communicated that predicting was a part of trading.
Dow, Lane and Appel were not among those who formulated and proferred this myth. But it has become a cornerstone of the financial industry. It is buttressed by a huge insistance by people to use inductive reasoning as part of the unnecessary operation of predicting.
Two other myths have come into being to support the predicting myth; they involve playing the odds and providing protection against failure. Arithematic is used to measure these things.
The P, V relation emerged as open interest (money flow) became important. Stochastics and MACD provided the price dynamic and the first derivative of volume provided the second independent variable's dynamic. These three-variable contributions were used to provide the market market strength. Of the eight possibilites only the two extreme combinations provided for "strong" markets, all others (6) created weak markets. Ross didn't get this straight and he came up with trending and consolidation and assigns a ratio. Welles Wilder did though. RSI means something as an indicator.
ET provides a full spectrum of the combinations and permutations of players whose beliefs come from either work or myths and mostly work founded on myths.
A recent statement by someone said that the market's behaviour is like all other natural behaviors (several examples were given as a spectrum). Wrong. Scientists of the markets, have shot blanks on this and most other matters. Anyone can see the splintering of the research into a spectrum of sub-disciplines; it is the opposite of movement to a universal understanding.
Securitization in four steps to the square created illiquidity as its summit.
Dow, Lane, and Appel did not. But their immitators have as a consequence of shortcutting the precepts and introducing the myths of the financial industry and trading.
What is required of expert traders is not easily understood at this time of the markets. The emergence of a global connectedness is very stimulating and creates immense resources for trading. The pools are beyond imagination and are creating billionaires by the score.
I wanted to see global "effects" and I got there two months early. Tens of square miles became hundreds of square miles became thousands of square miles in three months. Where 70% of the Earth's fresh water exists is located is literally errupting.
What destroyed critical thinking among people who wnated to learn to trade? It was probably the words: "day trading". As a catalyst we all see what happened to discourse as a consequence.
There is a saying among expert traders: "An expert can tell who is another expert." Where to experts come from? They come from the working class. The first thing on the list is to know and understand markets. To do this you need to be able to use science and not use myths. The market has two variables; their relationship is clear and it is counterintuitive and symmetric. There is no predicting or odds or protection involved...
