Time for some philosophy...
Years ago, I was doing some computer work for a friend of a friend, down in Austin. He had for the time, a really advanced rig - a satellite dish on the roof giving him real-time feed on markets, and a semi-graphical display of the data with various indicators. I was setting up a network so he could access the data from both his office and his partner's office, and via modem from his home.
I noticed he had a printer in his waiting area clicking away producing DJ news reports, and I asked if he wanted to duplicate the newsfeed and either print it or just display it in the offices... he laughed and told me that by the time the news hit that printer, it had already affected the price (he traded exclusively gold contracts) and was therefore totally worthless to him. I asked him why he had it at all, and he said it made his clients happy to see it plus he could use it to explain briefly to them what was going on.
But wasn't the news necessary to deduce the logic of the price changes?
He told me it has nothing to do with logic - it's people, and so it's about emotions and nothing else. If you don't understand the emotions of the people in your market, you won't be able to do diddly squat. Logic is for after-the-fact explanation, for people who don't know any better.
Still waiting for some action...
Did you look at that last chart? It did bounce, didn't it?
Years ago, I was doing some computer work for a friend of a friend, down in Austin. He had for the time, a really advanced rig - a satellite dish on the roof giving him real-time feed on markets, and a semi-graphical display of the data with various indicators. I was setting up a network so he could access the data from both his office and his partner's office, and via modem from his home.
I noticed he had a printer in his waiting area clicking away producing DJ news reports, and I asked if he wanted to duplicate the newsfeed and either print it or just display it in the offices... he laughed and told me that by the time the news hit that printer, it had already affected the price (he traded exclusively gold contracts) and was therefore totally worthless to him. I asked him why he had it at all, and he said it made his clients happy to see it plus he could use it to explain briefly to them what was going on.
But wasn't the news necessary to deduce the logic of the price changes?
He told me it has nothing to do with logic - it's people, and so it's about emotions and nothing else. If you don't understand the emotions of the people in your market, you won't be able to do diddly squat. Logic is for after-the-fact explanation, for people who don't know any better.
Still waiting for some action...
Did you look at that last chart? It did bounce, didn't it?