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My turn to say "exactly"...hehe.
It's always been my firm belief that most people make trading way too
complicated. As you said, when price moves from A to B there are only a few
ways it can do that. I also believe traders would be better off if they
took an "inside-out" approach versus an "outside-in" approach to how the
market moves.
Years ago I threw out all the toys and began studying just the Price action
on the charts. I looked at all kinds of markets going back decades and
focused on what the market did before it made a move, and then how it moved
once underway. And the funny thing I discovered was that they all behaved
in the same manner in regards to S/R levels, retracements, chart patterns,
etc.
Of course once you discover what you need to do you still have to do it, and
it's that learning how to trade part which is the hardest of all.
Bob
----- Original Message -----
From: "Nick Ali" <nick.ali@xxxxxxxxxxxxx>
To: "Omega List" <omega-list@xxxxxxxxxx>
Sent: Monday, July 15, 2002 6:52 AM
Subject: Re: Work 50-70 hours a week
> Exactly! imvho if you do not have an intimate grasp of price action you
> will never make it to major league let alone 'star performer' (talking
about
> discretionary trading here). Once you have a really deep understanding of
> price movement you find that most of the squiggly lines obscure what price
> is trying to tell you.
>
> As for markets changing I'd say no, however I'd agree they exhibit
somewhat
> different characters. Things like program trading must have some effect.
But
> if a price is going from a point A to a point B there are only so many
ways
> it can do that. Some times it moves 'better' than others. If you take
charts
> from the early part of this century price was moving in those self same
ways
> then.
>
> Each to there own of course.
> Cheers,
> Nick.
>
>
>
>
> ____Snip____
>
> However, I can tell you that I still use the same entries, the same
> timeframes, the same methods to determine the market's S/R levels, and the
> same techniques to manage a trade - which are all based on PRICE action
(and
> I still despise any and all indicators/oscillators). The underlying
> foundation has not changed at all, and that is really the point I was
trying
> to make in my earlier post because there is a huge difference between
> adapting to subtle changes in the market (consciously or subconsciously)
> versus constantly being on a quest for New methodologies. If that's the
> road someone is traveling down then they will never become proficient at
any
> of them.
>
> Bob
>
> ----- Original Message -----
> From: "Gary Fritz" <fritz@xxxxxxxx>
> To: "Omega List" <omega-list@xxxxxxxxxx>
> Sent: Saturday, July 13, 2002 8:55 PM
> Subject: Re: Work 50-70 hours a week
>
>
> > > I disagree completely on having to be on a constant quest for new
> > > methods. The markets may change in terms of bear/bull and other
> > > things like volatility but the Price action doesn't. I've been
> > > trading the same methods for years and while I have added a wrinkle
> > > here and there as I become more experienced, the underlying
> > > methodology has remained and will remain constant.
> >
> > I suspect you have changed more than you realize. The markets DO
> > change and they DO act in different ways, and a successful trader
> > must adapt to those changes to continue to succeed. I'd guarantee
> > your trading methods are not identical to those you used in early
> > 2000. The broad-brush approach may be the same, but I'd bet a lot
> > that your fine-detail implementation of those techniques has changed.
> >
> > A good discretionary trader is so "in tune" with the market that he
> > may not even notice its character changing, and may not think about
> > the changes he makes to his approach. It all happens subconsciously
> > as the trader flows with the market. I doubt ANY successful trader,
> > discretionary or no, can succeed for long without rolling with the
> > market's punches.
> >
> > A mechanical trader's system is cast in stone, so he can't "fudge"
> > his approach without being aware of it. A mechanical trader may be
> > more susceptable to market changes, especially if his system does not
> > adapt. I'd believe that mechanical traders have to spend more time
> > refining and adjusting their approaches, especially since they then
> > cast those approaches in stone and expect them to work without ANY
> > changes.
> >
> > On the other hand, a mechanical trader doesn't have to spend his time
> > staring at screens during the trading day, because the system does
> > that for him. A mechanical trader doesn't have to spend time
> > watching the pre-open, or trying to decipher news events, or doing
> > many of the other activities that occupy a discretionary trader's
> > time. Different approaches pay their dues in different ways, but
> > they all pay their dues.
> >
> > Gary
> >
>
>
>
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