How to know trend or chop in REAL time

Discussion in 'Trading' started by galvinlee888, May 9, 2015.

  1. kut2k2

    kut2k2

    I doubt it's very common but I'll grant it's more likely than roulette spins. Stocks do have a generally upward drift.
     
    #121     May 18, 2015

  2. I normally take 4-6 losers before I get my prize, and I will ride this hottie prize all the way through.. ;)
     
    #122     May 18, 2015
  3. They should have, especially if you include inflation.
     
    #123     May 18, 2015
  4. loyek590

    loyek590

    yes, they always come in threes. That's why I never fly after two plane crashes.
     
    #124     May 18, 2015
  5. loyek590

    loyek590

    Remember, we are not betting on whether it is red or black, we are betting on how people will bet when it starts trending.

    that's why I say, even if you are hermit trading in your pajamas, you need to be a people person.
     
    #125     May 18, 2015
  6. While I'm sure it's generally a good thing to be a people person, I'm not as sure that it's essential when trading in your pajamas, as you say.

    "...If there’s one basic principle, he says—repeatedly and slowly, as if instructing a child—it is this: “Buy stocks that are being bought, and sell stocks that are being sold.”

    http://www.bloomberg.com/news/artic...-moving-japan-made-more-than-1-million-trades
     
    #126     May 18, 2015
  7. dbphoenix

    dbphoenix

    Actually that's not what he's doing. He's buying stocks that are being sold. But nothing is lost by waiting for the turn as long as one knows when that is occurring.
     
    #127     May 18, 2015
  8. I thought the Softbank trade where he made the market was more the exception than the rule. You'll also note from the article:

    "Two years after learning to follow the momentum, CIS says, he’d made 80 million yen day trading on the sly at the office. In late 2003, he quit the salaryman life to work the market full time."

    As you wrote, nothing is lost by waiting for the turn. I think once a turn has spread its elbows just a bit, so to speak, that is perhaps the safest time to initiate the first leg of a position. It doesn't have to end there, but I think it's the best place to start. And, as I'm sure you'll agree, that's not calling a turn; it's acting on one.
     
    Last edited: May 18, 2015
    #128     May 18, 2015
  9. Yeah, after surviving the first two, it would become a drag.
     
    #129     May 18, 2015
  10. I'm not sure I understand the rationale, unless the outcomes are not independent (slanted machines or whatever). But then, I've never set foot in a casino.
     
    #130     May 18, 2015