Trading pure supply/demand

[stocon]

I just finished an article by Sam Seiden entitled Focus on True Supply and Demand ...And Better Your Odds for Low-Risk Entries.
It talks about looking at just price and volume and nothing else maybe some candles and how easy it is to trade. Just a little Adam smith and Psch 101. Find the Breakout and buy it when price comes back to it. Really simple stuff , I hear alot of people here say that is all they kinda look at to. Kinda wycoff stuff. I think db did a ton of stuff on Supply and demand or support/resistance with some volume. So I googled the guy and I guess he really isn't that successful, my question for you successful traders is, Is trading really that simple? Just price volume and electricity?? tia steve

 

[cnms2]

You can read this article in the January 2005 issue of SFO Magazine.

 

[coolweb]

if trading was simple

everybody would be sitting at home in their pajamas smoking cigs and making millions


probably only 3 people on ET doing that

everybody knows breakouts

everybody knows buy when pullback

but when do you take profits

how much profits are able to be taken

if you don't take profits and price comes back to your price and then drills down another $1 where you are shitting in your pants, is that when you take profits?

How long can you wait till you take profits?

Will the issue gap down on you if you take it overnight?


With experience,
And testing
All the questions can be answered in crystal clear clarity answers.

Without it, Who knows whats going on

Just buy the breakouts and we'll make millions!!!

 

[cnms2]

Read the referenced article: it doesn't say to buy breakouts, it says that a breakout helps identify the demand / supply area, so you enter when this level is revisited, for a low risk / high probability trade. You take profits when you reach the other supply / demand area. You can try to improve your entry / exit by carefully analyzing the candles when the setup shows up.

Quote from coolweb:

if trading was simple

...

Just buy the breakouts and we'll make millions!!!

 

[Johnny Walker]

I see what coolweb is saying, alot of these common trading methods that many people use can work. The problem is once you get into the trade how do you treat it: do you pyramid, scale out, where do you set your stop, when do you take profit, how long should you sit tight, etc. Point is, wether you are trading a breakout system, a pullback, voltality, or fundamentals you won't make money unless you know how to manage the trade.

I have personal expeirence with this beacause for a 2 week period I had about 6 money making trades in a row and I let all of them get stopped out at about breakeven.

 

[saxman]

i look at only price, volume, and chart patterns to trade. that is all u need. find the best setups and only trade those.

 

[Riskmanager]

Quote from stocon:

I just finished an article by Sam Seiden entitled Focus on True Supply and Demand ...And Better Your Odds for Low-Risk Entries.
It talks about looking at just price and volume and nothing else maybe some candles and how easy it is to trade. Just a little Adam smith and Psch 101. Find the Breakout and buy it when price comes back to it. Really simple stuff , I hear alot of people here say that is all they kinda look at to. Kinda wycoff stuff. I think db did a ton of stuff on Supply and demand or support/resistance with some volume. So I googled the guy and I guess he really isn't that successful, my question for you successful traders is, Is trading really that simple? Just price volume and electricity?? tia steve

That's the way to go.

But I differentiate between psychology and strategy. Psychology/NLP are the right tools when it comes to fixing your own inner game and understanding the inner games of other market participants. But since we as traders are rather interested in exploiting other people's weaknesses rather than help them fix it, strategy is the way to go.

I started applying game theory to collective behavior pattern analysis about two years ago, and what I discovered was that if you analyse formations, important technical points etc. from that point of view, the market tells you what to do and what not to.

In the end, it's all about supply and demand, baby

 

[candletrader]

Quote from coolweb:

if trading was simple

everybody would be sitting at home in their pajamas smoking cigs and making millions

Trading is simple... its just that failed traders can't stick with any basic positive expectancy approach, the moment they take a few losses with it...

In my view, the difference between well-capitalized winning traders and knowledgeable, well-capitalized losing traders is the intestinal fortitude to continue executing a positive expectancy system once a string of losses occurs...

 

[stocon]

Quote from Johnny Walker:

I see what coolweb is saying, alot of these common trading methods that many people use can work. The problem is once you get into the trade how do you treat it: do you pyramid, scale out, where do you set your stop, when do you take profit, how long should you sit tight, etc. Point is, wether you are trading a breakout system, a pullback, voltality, or fundamentals you won't make money unless you know how to manage the trade.

I have personal expeirence with this beacause for a 2 week period I had about 6 money making trades in a row and I let all of them get stopped out at about breakeven.

Refreshing to hear such candid honesty. To get a good entry is still very important. If you are constantly getting off to a bad start and getting stop out all the time there really isn't much to manage. And the ego gets slaughtered, making it dif to let the profit run, hence the quick profit taking. Johnny, I got to believe you are on to sumtin and you never did take a loss so you did manange. What's the killer is you get the wash then it turns and screams in your previous direction. Kinda hurts. But six n row in the initial right direction I gotta believe you've got something.