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Supply and demand and the perfect holy grail...
I do believe that supply and demand are also time frame related. There is a
very interesting article in the wev site of Olsen and associates about the
fractal nature of trading. Basically what is a blip for the fund could well
be a trading opportunity for a market maker so supply and demand react to a
certain level of price or price activity. The liquidity of the market is
related to this idea: when prices start to fall or rise at a certain speed /
level (I use these 2 words non to mean the same concept) then something
happens in the mind of ALL the investors and then you have no more supply
and demand.
About fear: I started to trade successfully in a consistent way doing the
hardest thing that is to close quickly a wrong trade and to let the market
tell me when to enter following my systems. The hardest thing is really
"surrender" yourself to prices and to the analysis you have done before.
Being also a technical analyst for my bank puts me in the weird situation to
be right as much as possible but it is clear that analyst HAVE to be right
and traders HAVE to make money and usually this makes the difference in
making money, the right reason to be in the market. When I accepted it was
right to be wrong then I could accept to take losses more quickly and let
profits run or being able to re-enter a trade successively. And this is
valid even to apply your own reaserch to put up a trade.
Riccardo
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