"So you throw out all technical analysis,all fundamental analysis and what do you have left??" The psychological aspect of trading, perception of value, news, who is buying what and why? Ready to hit me with a rubber chicken? Can you trade stocks without using numbers?
Rubber chicken? Nah!!! How about a few cold hard facts instead??? Supply and demand drives price, the what and why is irrelevant. As a retail trader, by the time you get the news (yes, even those high priced feeds), it's already old news and factored in. Again, irrelevant, follow the price. BTW, price is a number, and price is what puts cash in your pocket, not the news. st
I think he is referring to Market Profile. If you have a system that is based on RSI & MA then I assume that it is a complete trading strategy: Entry, Exit, Stops (R-isk), Profit targets etc. I don't think it is wise to abandon a trading system just because you're suffering a draw down since it's par for the course. If the draw-down is causing you discomfort then this is telling me that your risk is too high. Large draw downs will occur with the best trading systems if the Risk has not been clearly defined before market entry. Type 'Tharp' into google and read up on risk management. Also the book titled: 'Trading in the Zone' may help you get to grips with your psychology.
Bear with me. I started out wanting to be a chart whiz, an IBD'er. Then I got hooked up with this value stock, now I can see the gaps the m/a the pivots points are meaningless, I can now take the chart and chart the news, screw the price and volume t/a aspect, it's moving on the news. Okay, toss the chart out the window and defer to the value guys. The higher it went the more euphoric the value guys, it triples and is way "undervalued"? Now I'm losing confidence in the value guys and outcharting the chart guys cause there is nothing to chart. All that is left is the psychological trading of the stock, so to speak. Well, how can I apply this? I suppose the only stocks with no charts and foggy fundies is the IPO's. Maybe I can find a level playing field or an edge in the news leading up to the IPO's. I am finding out Ipo's have another set a problems.
In response to your earlier post I believe you have to know about yourself, then find a method that fits your personality, and then do the homework to show that it has a statistical edge. You seem to be exploring many methods without giving any of them a chance to prove a statistical edge. For example, I trade index futures, and last year I spend almost the entire year try to scalp for a few ticks with an inverted risk to reward. I just couldn't pull the trigger consistent. Constant fear of 1 loser wiping out the last 3 winners. Just not for me. For the last 6 months I have been learning and working on a method that has 2-1 or 3-1 reward to risk with better than 60% wins, but it comes with some subjectivity. That subjectivity has taken me the last 6 months to get decent with. Then I had to go back and manually look at atleast 200 trade set ups to prove my statistical edge. Now I get more confident to pull the trigger because it fits me much better than being a scalper. I am much better trading in the direction of the trend and trading 2-4 times a day then 10 times. I have an overall sense of where the market may go and wait for a signal in that direction. I am aware of the fundamentals, but I never trade off of them, because in most cases, they big players have them factored in to current price action so technical analysis works fine. When you find a method that your are comfortable with psychologically, then you refine that into a system, slowly you will build more confidence and you will be on your way. I am still working on it, but it's coming together this last 6 months, after being at this full time for 2 years. I hope this help a little bit.
Without FA and TA, one will have time and price. There will be trend, but no trendlines, there will be stops and take-profit, but no support and no resistance. One will trade counter intuitively, but use good money management strategy to trade the market.