Quote from jack hershey:
For the long trend see the topic "undervalued". (177, 223)
For the short trend see the toopic "overvalued". (177, 223)
When a market is in a neutral state the price formation is called "four o'clock drift." It is like a iine sloped as the hour hand at four o'clock.
For your prior Question on how a trading IB and clearing house relate to the trader, see Larry Harris's classic: "Trading and Exchanges (Market Microstructure for practitioners.) Oxford University Press, 2003. It is a seven part book and it uses the industry standard vocabulary.
The pages in ( ) are the Harris pages.
'How to Make Money in Stocks" by Williaam J O.Neil is a very important book for ajusting your trading attitude to top performance. Reading it a few times a year will keep a mental framework available to slot your other intellectual progress into.
My first book was Magee 4TH Ed.
A lot of the posts in ET serve to show the ststus of the poster. Basically everyone goes through a learning process. The fastest way is to ask questions. Another way is to develop beliefs from traditions. As you see plain Arithmetic has had a serious influence on people. Markets have a lot of players and they have "attitude". IB's and clearing houses do services and they get paid when the service is completed. That is their rightful attitude.
Acounts get settled as in poker games. You turn in your chips and get a cash settlement after the game. When I play 21 I share my profits with the dealer at the end of the game and not round by round. Pekelo, Redduke,lucrum, Magna, Atticus, etc., are helping everyone focus on learning how the IB, clearing, and exchanges take their money for services. They may still think they pay for srvices at the end of the day, but the services are collected immediately, instead.
EE does not talk about costs of trading very much. It is because the costs are neglible. For a 25 trade day my costs run around 10K. So Redduke is correct, my print of 8,225 gross does not cover my daily costs. For 25 trades 2 to 3 winners are close to what I have to pay out.
I have negligible costs for trading. I paid 800 bucks to make 8000 bucks in a small amount of time.
I do four pages of stats for each day. My log is five pages long and I print four charts to show the day. My "critical review each day is about one or two pages. I run five other yellow pads to take topical notes, if any.
My hands and up to my left shoulder joint has noticable calcium build up from writing for 55 years. I resemble an experienced carpenter who has been swinging an Estwing for a decade. Framing may only take three swings to drive a nail but there is more to it than the 28 inch handle.
How to get the average ET reader up to a minimum level of understanding market operations hasn't happened in ET. Pekelo. Redduke, and atticus all commented on the common reading errors ET members make when reading prints. I asked several people how to present trades in an understandable way; Atticus suggested doing what he does. Frenchfry said nothing. So I did my illustrations and learned that the ET memebrs could not read the illustrations and that they are happy to be where they are.
Terrific. A lot of ET folk can have a lot of AHA's in the future, maybe.
The two trades that combined to make the 8,225 had some subtleties that will not even be noticed. As of now they are called bullshit by those who are judgemental.
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