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Dear Bill,
I need some clarification.As a 1 year Newbie who has had good fortune System trading with position systems, I have now branched out to Day Trading.Ihave been experimenting with S&P 500, Nasdaq 100 and T-Bonds with some success to date.I even plan on adding 1 or 2 new Day Trading systems I have followed. No they are not the Holy Grail but they do make money after reviewing statements.
I also know several others who make money with proprietary Day Trading Systems, so I would not be to quick to tell others to throw in the towel.By the same token I do not doubt your suggested methodology, it is just impossible to teach since it comes from an aquired sixth sense.
I mean you no disrespect but rather want to present another point of view.
Regards,
John
------------------ Reply Separator --------------------
Originally From: "Bill Eykyn" <t-bondtrader@xxxxxxxxxxxxx>
Subject: Re: Debate not Argument
Date: 04/05/98 09:58am
Earl and other Newbies on RT
I have picked up three sentences of your post, Earl, which sum up completely
the route that most successful daytraders have had to take, to get there:
1. I've wandered the landscape of TA beginning with indicators.
2. Over the years I've moved from formula based trading sytems to
simple pivots, trend
lines, and channels.
3. This may provide an edge to those who use them.
Anyone new to trading could save themselves a lot of heartache and
walletache if they realized that there is no indicator which is going to
tell them what the next bar, on the leading edge where you put your money on
the trade, is going to do. The indicators and programs you can buy are
based on price and, since price has happened, the indicators cannot tell you
what is happening next. They will, certainly, tell you everything if you
look over your shoulder, but precious little when you peer ahead with hope
in your heart and your hand on on the telephone.
What you can learn from the market is that it will stall, pause or otherwise
hesitate at support and resistance levels. The price and the manner in
which the bars form at the leading edge will give you the best indication as
to whether the market will, following such antics, advance or decline - or
go sideways!
The boys in the pit have a stack of cards for recording their orders. The
one on the bottom has the pivots and the major recent sup/res levels written
on it. The don't have , RSI, Stochastics, MAs, MACD, or even Andrews'
Pitchfork in the pit (although I can think what some would do with a
pitchfork, if the did!!) and let me dare to suggest that you don't need them
either!
The pit traders tools are keen observation and timely action - and they
should be yours, too. Over time, successful traders have found out that
there ain't no indicator, system or holy grail which can lead them to wealth
. They had to learn to trade - and that means keen observation of the
market and its environs and timely action and re-action to it. Very simple.
Damn difficult to do. But that's what has to be done.
Believe me!
Bill Eykyn
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