What books will you recommend to a starting trader?

[Frederick Foresight]

the base is no longer human psychology-- it is the machines. Algo's gaming each other, predatory creations with the core based on random market theory--- others genetic Darwinistic models that have zero to do with psychology--- the machines are close to 90% of all volume now, there is no fear or greed involved.

So you say. And who writes those algos?

There continues to be tradable directional price movement, sometimes clean and sometimes not so clean. Prices continue to overshoot in one direction or the other relative to "value." Sure, there are the bloodsucking HFTs, but there have always been bloodsuckers of one kind or another in the markets. So what has changed? The basic elements remain in place.

 

[Frederick Foresight]

there is no fear or greed involved

In your dreams, boyo.

 

[marketsurfer]

In your dreams, bro.

There is personal fear and greed in regards to your interaction with the randomness. And i agree, that's a powerful force in relation to your account. I have seen greed topple the smartest folks on earth in the market. And fear keep the intelligent poor in poverty.

surf

 

[marketsurfer]

1--So you say. And who writes those algos?

2---There continues to be tradable directional price movement, sometimes clean and sometimes not so clean.


Prices continue to overshoot in one direction or the other relative to "value." Sure, there are the bloodsucking HFTs, but there have always been bloodsuckers of one kind or another in the markets. So what has changed? The basic elements remain in place.

1-- the genetic ones "write" themselves. If u look at where the top funds recruit their talent- its from the top schools that all teach the efficient market hypothesis so by default, we can safely say these machines have EMH as their core philosophy when approaching the market.

2-- yes.

 

[Xela]

Trading is not linear

I certainly don't disagree with this.

There is a huge difference between success in trading and success at other fields. The basic reason for this is all other fields are linear

I'm not quite so sure about this part - I think actually quite a lot of things - and perhaps especially educational processes - are non-linear (obviously in varying proportions). I do take your well-made point, though.

 

[marketsurfer]

I certainly don't disagree with this.





I'm not quite so sure about this part - I think actually quite a lot of things - and perhaps especially educational processes - are non-linear (obviously in varying proportions). I do take your well-made point, though.

Thanks.

surf

 

[Frederick Foresight]

1-- the genetic ones "write" themselves. If u look at where the top funds recruit their talent- its from the top schools that all teach the efficient market hypothesis so by default, we can safely say these machines have EMH as their core philosophy when approaching the market.

2-- yes.

Should I be concerned about #1 if #2 remains in place?

 

[marketsurfer]

Should I be concerned about #1 if #2 remains in place?

That's the whole point. Longer term, retail traders can still consistently make profits---- it just takes a deeper understanding than just price.

 

[Frederick Foresight]

That's the whole point. Longer term, retail traders can still consistently make profits---- it just takes a deeper understanding than just price.

I see tradable directional price movement in short-term price action. Is it illusory? What deeper understanding am I missing?

 

[marketsurfer]

I see tradable directional price movement in short-term price action. Is it illusory? What deeper understanding am I missing?

. I see tradeable short term trends in random data. Think u can trade it?