It doesn't need to be huge money and its not done deliberately---to paint a chart but that's the end result. Read winner take all for deeper explanation than I feel like going into. You folks are so fixated on pretty pictures and placing bets based on the transition of charts that you are completely blind--- throw in a few winning trades-- and the addiction to your false god becomes solidified. I had a close friend who was so convinced of financial astrology being correct because he turned 10k into over a million in college by using it--- then went broke and literally insane trying to make it work again--- it's a very sad situation. Don't fall into this trap. Why do you believe past price can increase the odds of future price being whatever? If it can't, why use it? If it could it would be easy to quantify how many moves in one direction increase the odds of a move in the same direction. It's impossible to do this-- yet via magic intuitive powers chart artists can? Get real!
No need to believe. You simply either make consistent profits or not. Market quickly erases all illusions. P. S. Did you watch the interview?
You say read "Winner Take All" to get closer to the truth. There are dozens of books with that title. Which are you referring to?
William Gallacher is the author. In addition, practical speculation and education of a speculator by Niederhoffer and trade like a hedge fund by altucher are all excellent. surf http://www.amazon.com/Winner-Take-All-Commodity-Trader/dp/1557385335
I'm currently reading Hedge Fund Market Wizards by Jack Schwager and he made an interesting interview with Jimmy Balodimas who is the guy you're looking for. Jesse Livermore was also notorious for making bets based on his own feelings. Not saying they are the norm just want to point out that it seems some guys have an innate ability for this. Here is the transcript from the interview.
Another guy I know wears his lucky running shoes and does a jumping jack after he enters every trade. Never had a losing year for the last 5 since he started these rituals. There must be a correlation, right?? Market quickly erases all illusions, right? Geez, I guess I really underestimate the naivity of the chart brigade. Absolutely ridiculous, Posting truth is futile in the presence of true believers. surf
That's very interesting for me as a psychologist. I also have clear "feel" for the market of choice after all these years (will be 8 in a couple of months) in front of screens. What I usually do is try to pick moments, when market analysis/setup coincides with my feel. Those are the best trades.
Very true--- as long as its legal and ethical--- not to mention you being 100% truthful with yourself--- it doesn't matter. As a point of reference, my astrofinance friend became so deluded he would argue the market was going up when it clearly wasn't. Plus it was always his interpretation of the method that was wrong, not the method itself. Try an experiment by flipping a coin to decide long or short , apply the same money management tactics you use now. I betcha you will be profitable. surf