|
PureBytes Links
Trading Reference Links
|
Thanks for such insights. My current thought on this is that the only thing that
counts when putting on your trade whether short or long term is your game plan.
Without game plan you will be subject to other peoples games, with a game plan
you play your own rules. A game plan can be many things, and include the use of
fundamentals, indicators, sentiment, face observations on the floor, noise
levels, you name it. But this game plan should include clear and strict rules
about entering but mostly about exiting the market.
Here is where I would define the boundary between gambling and trading.
Gwenn
t-bondtrader wrote:
> My version of the OED defines gambling as "to play for money, especially for
> high stakes; to engage in wild financial speculations: to take great risks
> for the sake of possible advantage."
>
> I imagine that the vast majority of people on RT think of themselves as
> traders, or novice traders wanting to learn to do the job successfully. The
> thing that they do not want to do is gamble. They want to learn how the
> market(s) move and how they can trade, with a good possibility of making
> money. They want to risk the least amount of money in order to make the
> most they can. Simple enough concept! So what, in gamblers' parlance, are
> the odds of them being successful in this endeavour?
>
> Let us leave that as a rhetorical question, because no one has the answer
> anyway - just their opinion, which, of course, for most people is what the
> market is all about. Opinions and their influences are very much a part of
> trading and probably cause of more losses than anything else.
>
> It seems to me that the further away you are from the leading edge of the
> market, the more you are at the mercy of opinions and the affects of other
> people's actions as they impact the market. At the leading edge, the price
> action is showing you what it is currently doing and, according to other
> factors of support or resistance or retracements or other known constituents
> within that market, at that time, you are able to make a decision on whether
> to buy or sell or sit on the side.
>
> If you position trade, there are many indicators and systems to use and
> there are the impacts from Reports, Government policies, et al, that can and
> will influence your trading. It seems to me that in those circumstance
> there is much more of a gamble about what the market will do, because there
> is much more time for it to happen in. To make you feel worse, the
> indicator or wiggly wave is always right after the event, but cannot tell
> you before it has happened, what is going to happen. There are, to me, too
> many things to gamble with...
>
> At the very sharp end, there are no indicators to give you more information
> than the price itself. There is no time for opinions. There is no system
> that can do more than you can do seeing the price action as it happens in
> front of you. If you take action in accordance with what you see and in a
> manner which allows you to be wrong more times than you are right and still
> have the odds in your favour, then I think you start being a trader and not
> a gambler.
>
> Best of trading
>
> Bill Eykyn
> www.t-bondtrader.com
|