|
PureBytes Links
Trading Reference Links
|
It may be a 3-5 day ABC correction or ABCDE or an x day sideways market.
One just does not know.
Any other thoughts ?
=================================
It seems to me that the value of any indicator depends largely on the time
frame in which you trade. If you are a position trader, with a good bank
account and can withstand the drawdowns and the margin, there will be several
indicators which could put you into a good trade - and take you out again.
For me it is like the value of EW. We all know the market moves in waves, 5
up, 3 down, etc, but exactly when the market is going to go from one aspect to
another, is a wholly different question. I can think the market is ripe for
the start of a 5th wave, but is it? What indicator in the world is going to
tell me, in a timely, affordable manner? At what point in time do I commit
funds to a trade, where do I place my stop when I am in it and, most
importantly, when do I get out? What indicators are going to answer those
questions?
I am sure with a decent bank account and the ability to withstand sizeable
drawdowns, margin calls, etc, it is very possible to get yourself onto a good
trend - and make it your friend, until the end! But it takes large funds, of
that I am certain.
So, I can't do that. I have to make my living out of trading, day in, day
out.
What I have learnt, through hard and often bitter experience, sheer
persistence and eventually finding out exactly what makes the pit tick -
literally! - is this: it is price action, the tell-tale patterns and knowing
where the support and resistance is going to come in, that counts. For me,
that means being a day trader and, in order to make money consistently, I have
to get to know one, extremely liquid market, very well. I have got to get to
know its personality - just how it ticks. The rest is money management and
good application of my knowledge and experience - none of which is easy.
Of course there are indicators which can help in a general way - overbought,
oversold, etc, However, in reality, don't all indicators lag? They are
always right after the event... So where's the value of them, at the leading
edge, where your money is? Tough, ain't it just?!
Happy Presidents' Day to you guys over the water.
Have a good one - or is that a non-okay thing to wish on such a day, these
days, in case He does, just that! (Oh well, at least you've got a guy who has
proved he's got balls, all we've got is bland, Mr Blair...ugh!)
Bill Eykyn
More importantly, the value to you in putting a trade on, makes it imperative
that you are right more times than you are wrong.
|