The mind of a trader

Redneck said:
Had a think last night JT..., and any information we would choose to ignore - could / would be considered noise - I think

Then thought about the sources of said noise - as related to trading

All I could identified were three "potential" sources

Care to take a stab at what they might be

Little mental gymnastics to kick start the ole cranium this morning

:)

Good Trading All
RN
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Some ideas, but doubt what you had in mind:
  • Accidental or forced buying and selling by others - "My cat stepped on my 'buy 10,000 shares' hot key. Best get out."
  • Irrational buying and selling by others - "I'm feeling lucky. Buy! Actually, I'm feeling sad. Sell!"
  • Trades by others where speculation is based on a fundamental view - "10 shares in that tanking stock, please. Just get me in at any price before close and call me in five years."
  • MM / big player tricks - "Let's create a mini, temporary sell-off."
  • Broken HFT - "while(true) { buy(random); sell(random); }"
These show up in price and volume. Didn't go as far as psychological--in one's head--noise or news/opinion noise.
 
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wrbtrader said:
djmartin,

You trying to find time to trade while at work or you only trading when you have a day off during the work week ?

If you only trade when you have a day off during the work week...how often does that happen per month ?
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I trade at work. I'm in a really slow branch.
 
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JTrades said:
But there's got to be a point beyond which we ignore information?
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@JTrades and @Redneck: Isn't the word "information" specific to a context? In other words, in my opinion, the word "information" can only be applicable within one's model/framework. So, at no point can "information" be ignored. However, one man's "information" is another man's "noise"!

Another way of looking at "information": Data that is precisely useful for the model -- nothing more, nothing less. So, if "information" was a line, there will be "noise" on both sides (i.e., lack of information on the lower end; and, data that adds no incremental value to the model ('over information' in the colloquial language) on the higher end.)

Regards,
Monoid.
 
I remember when I use to hate Mondays, now that I trade I love Monday because its the beginning of the trading week. Happy trading everyone
 
No recap video tonight, just got home from a networking event for work. Today was a chop fest. I had a OK day considering the price action today.
 
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