No, you still don't get it. It means that one has to consider whether it is easier for MOST traders to trade longer time frames or shorter time frames. Your argument started off my only considering GOOD scalpers. Can most traders be good scalpers? I doubt it. Actually, I'm not. Why are you assuming that stochs can't be part of a usable system?
I am sure that your intent in posting the above was good, but your advice is very wrong. Very often, it is better to take a loss then to restrict yourself from achieving your intended profit target. Trailing stops can be useful, but don't set them randomly. Stops should be placed on logical areas.. not just where ever makes the trader feel happy. If you can identify a retracement figure which if reached after going into profit represents a high probability for loss, then a trailing stop there would be logical and justified. And do be an innovator. Not necessarily in the tools you use (although that can also be a great thing), but at least in the way in which you use them. Intraday trading can be very profitable if done right. You are right about it not being the best way to start out - it isn't for most. Combining it with a long term investment strategy is very wise, but intraday trading can still be very profitable on its own. There is nothing wrong with fighting the trend. Counter-trend trading can be very profitable if you know how. A stocks strength in a direction does not necessarily grow over time as it maintains that direction. It is very possible that new traders will not enter with the same bias as the trend, or will deem the trend to be overextended, therefore weakening the trend as it progresses. I actually agree with the advice about basic indicators. Price alone can do wonderful things. That's not to say that more "complex" indicators cannot be useful. As for those of you saying that your strategies cannot be back-tested.. you are wrong. If your strategy has a strict set of rules which are used systematically, then it can be back-tested.. you just don't how to do it. By the way, I realize that my tone in this reply is rather blunt. The usual reaction to such a post is "this guy is insulting me". I just want to point out that insulting any of you is not my intent in any way. I am merely stating the factors in a direct manner. I am hoping that you guys can respect the value of direct honesty.
Thanks for your post! I usually place very tight Trailing Stops (usually one point) long after a trade goes profitable so there is little chance of the issue turning back before I reach my target. Also, good comments about trend trading, although I have found one is lacking one very important entry tool when trading against the trend: MAs
Correctamundo! Fundamental analysis is just that-- analysis. IT IS USESLESS FOR TRADING!! however, it works for analysis and to find out the the "why". try trading with fundamentals!!
I think you are right, but i think to be realistic you have to have your timeframe in mind. If your only holding the trade for 1 hour what fundamental news is going to happen/come out/ have an effect on the price in the time frame of one hour? who knows, but typically it won't be anything your gonna find out. If your hold for years than of course you will be able to analyze the situation better and there will be more time for your analysis to play out earning,cycles, economics, etc. if that makes sense.
The winner of CNBC's contest would probably answer your question in the affirmative. http://www.cnbc.com/id/15840232?video=806001646