There is always a trend on some timescale. An experienced trader gets involved when the market intensity is on a timescale that they are suited to. A master trader could theoretically trade on various time scales successfully. Habits die hard. I was a pretty good swing trader basically trading with the trend until I got to the floor. On the floor I learned to scalp but now (decades later)off the floor again I can't hold positions and I am still prone to fade the markets. Somewhere I read a trading manifesto and the author was talking about trading from the "center outward." He meant from the center of a channel or volatility band. That finally stuck with me and I have been using the mantra: from center out and gradually it's working. Try this: they are so many opportunities daily in several markets, if you trade with the trend you could be successful and you would make all your dreams come true. If not, you are already living the alternative. Regards, GC
Always repeat this question, every day, aloud: what does the market want ? Ask yourself whether you heard yourself asking it. Then answer the question. Forget about what you want. Learn to see what the market wants. And go with it.
the two things that will always elude some people are: 1.The difference between a retrace and a reversal. 2. The pause in trends created by internal formations as compared to the trend formation. Why can't cash, flash and stock get this? Simple. They do not know what comes first for either and they do not connect price to volume. Trends "contain" internal formation during the trending. A retrace happens with declining volume and a reversal begins with increasing volume. So in a given trending direction how does a retrace turn into a reversal that establishes a trend? A retrace turns into a reversal by ending the overlap of the prior trend on the BO of that trend. So how does a retrace witin a trend begin? The forward progress of the trend comes to an end. swo will cash, flash and stock decide to get rich? I don't think so. they are all working at learning "failure". so life goes. One post on one sheet of paper. All the pieces stated. So they will not put the pieces together by looking at the market for 20 to 40 days all day long. At the end of 40 days there is only one way to put the idtentifiable peices together. What a shame for these guys. They continue to waste time not getting rich.
Look at the 5 year chart for the dow. The trend couldn't be more obvious which is why it has been (and will continue to be) so easy to make money going long.
Guru... could you expand on that "center out" thought please... maybe I am not that bright to be captivated by a thought I don't understand !
couldn't you find one trend setup? i mean one master it.. execute it flawlessly. over and over. then, and only then.. try for setup #2
flash i trade reversals,all this mrkt does is back and fill,ive been losing lately or just giving my winnings back because i havent adjusted to the hi vol and bigger moves,just trade smaller and with tighter stops...when trend approaches and end in this case uptrend...it zig zags violently ..as it is now this bull mrkt is ending..tough next 3 weeks to be a trend trader
Muskoka Joe There was a guy named Frankie Joe who several years always beat Marty Swartz in the trading contests. His died sometime ago I believe, but one of his sayings always has stayed with me. It was simply "trends up, I'm long"! I think this ties nicely in with the thought of not whether to buy or sell but rather which way to be positioned at the moment. I couldn't agree more and posted some insights gleaned from an extremely large and successful regarding this very issue on the thread -successful traders keep silent - they certainly brought about an epiphany for me! Best Regards Johno
There are three concurrent trends every day that are blended from three different fractals. These 8 distinct combinations of concurrent interrelated and independent concurrent trends are what determine how to make money at optimum money velocities. See two items in first post. Money velocities in making money are measured in units of points/minute on the ES for example. Around open, 2 to 3 points a minute is not uncommon. I have posted three correlated charts on this money velocity in the past. the charts explain what to experct at what time of the day and what skill level is needed to trade properly. A 5 year chart is what measures how going to undergraduate college AND get an MBA over 5 years is measured. To pay the 100,000 a year tuition and perks, you trade the trends I am talking about with 20,000 dollars for about a week to pay for each year of college. A week of trading pays for a year of education. What you are talking about in trends is the definition of buying power remaining unchanged for a five year period. The five year trend of an index simply defines what standing still in terms of wealth really means. You graph is the zero base line from which to step forth to begin to make money. If a person makes what you graph shows in five years, he has accumulated zero new wealth and he has no increased buying power in the true value of the use of money. The notice if you are making money you need a semilog graph for an equities curve. Place the five year index on it as the reference for breakeven or zero growth in terms of real money. next put your actual curve on it. If it is less than a steraight line tipped from lower right to upper left and passing through an order of magnitude in more than 18 months you are not performing. Skip the graph, you cannot do it anyway. Anyone who doesn't meet this criteria is passing up what the market is offering to be taken. Graph what the market is offering to find out the asymptote of a non leveraged profit making system. Then plot leveraged charts. to see how making money really works. Minimum peformance over time is defined as a straight line. Growth is defined as a line continually curving upward. All of this is covered in the first form under exponents. remember graph paper? Did you make airplanes out of it or something? There is a possibility that you, cash and flash cannot understand a word I am saying.