CRUCIAL Knowledge about TA.

Discussion in 'Technical Analysis' started by alex.samant, Jan 12, 2008.

  1. TA for system building is all about adding filters and rules to what you see and use to help you make quality trade set ups while apply this to the style that works best in the environment you are in.......If one can not determine the environment for the given time frame than you are better off using the "magic 8 ball" for your decisions.

    That being said, money management and emotional control of your self can make or break any edge or statically proven method when you override that model.....your mind than become the flawed variable in the formula.

    With big size on trades......I feel better with systems and rules that I can not break......and I leave 20% discretion to allocate bigger size to model or systems that do best with the given environment.

    Once you understand trending markets in a bull market and trending markets in a bear market and the range bound markets during each market cycle than you have the framework to deploy the proper systems.

    It is not easy and does requires x years of trading the different market environments but that is the defined difference between a competent trader and as master/ expert trader and one that makes 50K a year and making 5M a year. My opinion only but after 10 years in front of the screen and watching and learning from over 200 different traders the last 4 years....that is my conclusion......one must be flexible and dynamic with the tools and systems they use on the market along with proper bet size, risk model and emotional control to stay with your disciplines.

    Trade well ...........and why last blurb is to those that say volume can not help determine direction with any edge>>>>>>> Bullshit. Tell me a better way to see who is more aggressive on the inside market with out knowing who is hitting bids and taking offers more aggressively and where we are in the daily and weekly market cycle.

    We go from selling climax to buying climax and than fall back or rally into the equilibrium zones. Look....it is an auction process and that is what moves prices everyday.
     
    #81     Jan 26, 2008