It seems like the vast majority of ET trades mainly on TA. Does anyone here trade based on actual news flow? Upgrades/Downgrades, chatter, other news? That's 95% of what I trade around and am always looking for other similar traders to share ideas with and help each other get the news and understand the news as quick as possible.
my trading based on few simple math calculations with current price. no TA,no charts,no news flow . KISS btw-how you can trade the news? by the time it's reach YOU-it will be in the price already.
... right -- good to know a strategy that has made me money every year for 13 years is based on OLD news. I will start trading based on death crosses from now on.
The vast majority of Elitetraders also seem to vanish without notice or warning and no one seems to know exactly where they went or what happened. TA is good for subscription sites and blogs, but for pure trading its no good. The only people who seem to be successful with it are the "after the fact" traders on the internet.
Um..... Bad news I go short. Conversely, good news I go, wait for it, long. Good traders can break down the news and determine whether it will lead to an extended move or if it's over by the time you get the flow.
LOL,...seriously I just do NOT get why people seem to think if TA does not work for them then it MUST be useless. Thats like saying to a carpenter that his saw and hammer are a piece of shit because you cannot make the same beautiful desk and dresser drawer that he can. TA is not for everyone but you really should come to grips with the fact that TA is a viable way of trading. Afterall Goldman Sachs an most other big trading firms and hedge funds have entire departments dedicate to this type of trading.
Many big firms have abolished their TA departments for a reason. Can people make $ with it? I really don't know. I think it has it's place for VERY long trends and it also has it's place to an extent when timing a trade with a fundamental thesis or some sort of catalyst, but I've been in this business for a very long time and all but one successful trader I have done business with has made money with fundamental trades. One of the traders I am dealing with right now is profitable trading TA, but he has only been successful for two years and that's not enough time for me to be sold.
spent a month with a Bloomberg demo,stared at it all day waiting for some news to trade. when the news hit,the algos are so damn fast to push the stock around.You have to be lightning fast to get in on the first move.
The news that gets reversed quickly just wasn't big enough news to keep it going for an extended move. I can cite tons of news pieces recently that have continued to move in the initial knee jerk reaction direction for a very long time. You have to determine how good the news is and also you have to try your best to find under the radar news.