Don't Be Fooled By Randomness

[Don't Be Fooled By Randomness]

mmmmmmmmmmmmmmmmm. :crap::crap::crap::crap::crap:

 

After reading through 4 pages of this discussion, I am really fooled by randomness of this debate. A simple discussion is crunched, crushed and .......................(out of vocab)...

 

Take a break buddies.

 

The original thread was something about randomness. Yes market moves randomly but gives us a few indications which maybe or may not be true. There is an element of randomness in it coz no one can collect and analyze each and every piece of information which moves market in either direction. and thats all:angry::helloooo:

 

There is no randomness when the market is decisive (forex anyways is all I can commen on as that is the one I have upskilled on.) You can read market structure and even order flow out of the candles. However, that takes many years (4 for me) of observing the candles and a few eureka moments. A bit like riding a bike....a process of long contemplation. It can be done...it just takes lots of work and basically, is not something anyone can teach (candles that is, I can't speak for the other approaches commented on in this thread.)

 

Once you get to this point, you have basically cracked it.

[Don't Be Fooled By Randomness]

What kind of TA methods do you use in your trading traider?

 

Support and resistance basically. I have a raft of complex rules that I have gathered from years of observing the markets (forex specifically) involving which candles and sets of candles are safe entries. Market tops and bottoms, I have found, are made up of only a few candle sets that repeatedly present. However, a candle or candle set must meet precise criteria before I will use it/them.

[Don't Be Fooled By Randomness]

Prop traders use charts simply as a visual to enter into a trade

 

However, the criteria for entry is thoroughly developed well before the trade is made. Some methods of technical analysis will help one "Quantify" their entry providing the research and backtesting has been done.

 

If your making your trade solely based on what you see on the chart then yess, you are randomly trading

 

Thanks. I trade purely through my charts (quite successfully in fact) but there's a significant degree of discretion involved.

[Don't Be Fooled By Randomness]

Which is it?

 

"This is why prop firms dont use TA/charts for day trading"

 

or

 

"If they do use charts, it's mostly Market Profile".

 

I know, because I traded in a prop shop a few years ago.

 

Did they use TA/charts?

[Don't Be Fooled By Randomness]

what makes an economist's book any more correct than the various other books out there on trading?

 

He may have been fooled by randomness and settled on index funds but i am not. Is it a coincidence that he both peddles index funds and is an index fund manager? I can assure you there is nothing "random" in that correlation.

 

I successfully day trade and swing trade using charts alone and no tape.

 

That said, finding a consistently profitable edge in the charts was not easy and took a long time.

 

The first and most important step on my road to success was to stop listening to gurus, talking heads, economists and most importantly - journalists.

 

Absolutely! There is no room for approximation with charts. Either you know them thoroughly and that takes time or else you are in for a hiding. I use nothing but candles. Its enough knowing the times when news is breaking, the charts tell me the rest. Yesterdays Euro buy was fairly obvious for me. However, I can't emphasise time and diligent application enough. And a good dose of lateral thinking.