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<DIV><FONT color=#000000 size=2>Steve et al.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT size=2>IMHO, the Tom DeMark material is satisfying to the beginning
trader because it gives them the idea that they can get in there and buy the low
tick and sell the high tick. If you notice when you are reading these
books, DeMark puts so much effort into finding those turning points. I
wonder if anyone ever told him that you don't need to be the first guy in to
make a living at it. </FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>I still can't get over the fact that the guy actually took the
time to get all of those indicators trademarked. That is so
arrogant. Seriously, we could all break out the charts and create a
pattern and then get it trademarked. I still don't think that alone would
guarantee us any trading success.</FONT></DIV>
<DIV><FONT size=2></FONT> </DIV>
<DIV><FONT size=2>Pete Beckwith</FONT></DIV></BODY></HTML>
</x-html>From ???@??? Wed Apr 07 16:05:40 1999
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Date: Wed, 7 Apr 1999 23:53:22 +0100
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From: "T-Bondtrader" <t-bondtrader@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: Sequential and ol TD
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Brent et al
I, too, downloaded all those TD indicators for the hell of it. I thought
that as he has perhaps the biggest reputation there is on indicators (and,
as you know, I have such a low opinion of indicators for day trading the
T-Bonds) I ought to give them a whirl on a few charts. Well, I know I
don't have all the additional bells and whistles that TS has to do a
thorough job, but with my SC I couldn't achieve anything that would be
close to making money, with any of them.
Anyway, the very next post to yours was a private one from someone who has
been on RT for some while and, he wrote to me, commenting on my approach,
as follows, "You are a man after my own heart. I abandoned indicators
around 92, after some 15 years of great heat but little light, and my
trading, once I turned to trading straight off of price action, improved
immeasurably. Indicators gave me great tranquillity and reassurance but
little results. I decided that I didn't need them, or anyone else to hold
my hand, anymore." This cut and paste is in no way out of context and
relates purely to the fact he has read my material and the methodology I
use for discretionary day trading. The person concerned might even have
his own pennyworth to say on this forum - if he is monioring it at the
moment.
If the best indicator producers are derided at every turn, it seems only
sensible for the many newbies on this forum to take note.
Yesterday evening, in London, at one of my occasional seminars, there were
a number of people who had paid £5000 (yes, good old sterling, so quite a
lot more in dollars!) to go on a course to learn to trade the FTSE (average
daily range: 26,345 compared with 425,091 for the T-Bonds). The course led
to the sale of a mechanical system, costing around £2,000, which had its
usual array of indicators and also generated red and green signals for
trading. All those present, who had attend the course, had subsequently
bought the system and had been paper trading or were doing so for real, for
about 6 months. Most were very unhappy at having spent what they had spent
for the results they were getting.. None, you see, were making money!
I know from first hand how those people feel. Six years ago, when I was
still searching for some equitable way of trading, or even learning to, I
bought (obviously an early version of) that system for £,1000 (but luckily
the one day tuition was thrown in!!!). I was fortunate in being able to
send it back to the originator and got my money back. The people, last
night, would dearly like to do the same thing.
When I started, the T-Bonds could not be day traded from England unless you
were with a big firm. The satellite dish on someone's home did not exist.
Now, through the likes of my feed vendor (DBC) the cost is one swing trade
a month, to trade the most liquid market in the world. And for simple
people like me, you don't need systems and indicators and other people's
opinion to trade it. You can learn to read what the market is doing, by
careful observation of the price action, against certain pre-determined
factors.
More than that, it is a positive disadvantage to rely on indicators
generally and, very particularly, on other people's opinions of what the
market may or may not do - which was why I was so outspoken recently.
Indicators are bad enough. People's opinions on the market are bad enough.
Put the two together and you have a recipe for real disaster, simply
because it will probably take too long to find out - and by then all your
money is gone.
Now there is no point all the position players jumping on me. I write, as
day trader, trading only the T-Bonds. But I do urge those who want to day
trade to put away indicators and concentrate on price action. You simply
have to learn to trade, learn to follow the market and, above all, have
confidence in your own judgment based on what you see, actually happening
in the market, as the ticks come in.
You have to realize that even indicators by such august people as Tom
Demark are useless for the day trader - perhaps he states as much in his
books, if not he ought to do so.
Bill Eykyn
www.dbceuro.com/bille.htm
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