If you are able to identify a trend early you will be ahead of most market participants. A trend will be easy to spot once it is formed and confirmed, but to spot it early that is a different matter. That different that I doubt that you will be able to do it. When I mean you I mean everyone. There are countless papers about trend forecasting and most of them are public just because they fail to be accurate. That is a extremely difficult task to achieve.
First of all thanks for sharing your view which also happens to be most popular view of traders. I identify early trend based on two aspects: 1. Market opening OR trend reversal 2. Early support/resistance My approach is simple and clear. From my experience I learned simple and clear steps makes things work better.
The topic I am presenting here is a broad statistical analysis of the general strategy "trade with the trend".
I understand "early" is a bit vague. Here is my explanation... I identify early trend based on two aspects: 1. Market opening OR trend reversal 2. Early support/resistance My approach is simple and clear. From my experience I learned simple and clear steps makes things work better.
I understand your question is "Do you have data to support your claim" I am presenting a broad statistical analysis of the general strategy "trade with the trend".
Identifying the trend early is not easy part but a disciplined part I identify early trend based on two aspects: 1. Market opening OR trend reversal 2. Early support/resistance My approach is simple and clear. From my experience I learned simple and clear steps makes things work better.
Sometimes different questions leads to same answer. I just responded with common sense. And of course i cannot make everyone happy. Simple and clear steps is my philosophy. So copy paste comes as a side effect with my responses. And yes trading is both art and science. Art is creativity. It needs creative visualisation to see the big picture of trading as a business skill. Business skill is a blend of intelligence (IQ) and emotional intelligence (EQ). Business mindset means healthy relationship with money. Ofcourse MBA is not mandatory for business success. It is speculated that 98% of traders loose money, probably because of lack of business skill or in other words throwing away money in the name of investment which is definitely not a healthy relationship with money. After a decade of trading experience i realised that i need to improve my relationship with money. This thread is my reflection/wisdom on how to respect our investment while trading. This approach of early detection of trend reduces the frequency of stop loss hits. I call it respecting our investment. Probably only 2% of traders may see/appreciate what i am sharing here. I am wondering what percentage of traders are in transition from 98% crowd to 2% club? Because i am one of those who completed the transition. The bottom line is trading is a business skill and definitely not a gambling skill. Majority of traders have gambling mindset which is very dangerous to their investment. And i cannot expect gamblers to respect my business point of view. Right?