Lol, so true. I would just say that learning different tools/indicators is still useful in understanding how market particupants slice and dice information. Just don't spend too much time on it, it's all hypothetical and generalized, imho
The benefit it has added to my trading is that it helped me determine exits. Before, I always struggled with exits. I would have to use my experience to determine how much my product would typically move if X happened. That was somewhat reliable, but I didn't like that it wasn't objective. Market profile/Volume profile provided me with what I needed: Objectivity. I had a more concrete way to understand why I was getting out. This helped me objectify my exits, which has helped the psychological game for me massively. Edit: Also, just want to say one thing: I don't think it's a good idea to frame it as a system because it's not. I also don't think this idea of a "system" should even be apart of the trading lingo. Systems are unreliable. You need structure and a framework. I view my understandings/strategies of the market in the following way... My strategy is like water, and the market at any point in time can either be a cup, a balloon, a bottle, etc... and the water (my strategy/understanding of the markets) must be malleable and adapt according to what object in front of it that it must fill. Not trying to appear as if I am imparting some guru-esque wisdom, but it's just my view of things.
Good points. In that case, how about trading option strategies with probabilities on your side ?? Here if you use statistics and probabilities wisely, you can over time aim to beat the market returns.
Statistics and probabilities? They are picks and shovels, you still need to know where to dig. And as MrMuppet said, the professionals have bulldozers and excavators against our picks and shovels. Been there done that, armed with BSM, binomial algorithms, excel spread sheets, VBA... I am no match for folks with room full of computers and army of PhD mathematicians, theoretical physicists, statisticians, financial analysts and economists. So, I (we), mom and pop retail(s), have to find crumbs, leftovers from the big boys. Kind of reminded me of panning for gold in abandoned gold mines.
A perfect description of what one of them is trying to do. There is no free lunch. In fact everyone is trying to eat our lunch.
So if we only have shovels why not dig in the same place as the excavator ? I mean why not follow the trend which the big boys are following. This is also one of the main tenets of market profile. Market goes like this Balance ---> Imbalance ----> Balance. You need to identify it.
As stated above, MP is away of viewing trade activity, some people swear by it, some people think it is a waste of time. We are all programmed differently. Use whatever helps you identify high probabilities of profit. BTW, have you ever used a shovel on the edge of a hole where an excavator is digging? Dangerous shit, just like trading.
There is no such thing as "trendfollowing". This is just an old expression from people who id not know better. When you follow the trend, you are betting on autocorrelation. So when your market is autocorrelated, even moving averages make money. Big boys do not follow the trend, this is long gone.
Common, really ... after this long bull market!? So how exactly the big boys make money with billions under management? Scalping?