What else is there other than technical analysis and fundamental analysis, when it comes to analyising an instrument to make trading decisions from? There was a guy on T2W who gave the impression that he done very well and he said he didn't use TA or 'Fundamental analysis'. Our very own lescor who appears to be one of the 'top boys' here also said the same thing in his journal the other day. (basically doesn't use TA/charts or FA) what else is there? Is it that they ARE using TA, but from their individual perspective is isn't TA. Like, maybe they think TA has to mean using an MACD indicator which they dont, but they think trading from teh DOM ISN'T TA and thats what he means, whearas i'd still call DOM trading, TA. (the guy from T2W discounted trading from the DOM, so in his case, this isn'y the answer) I get the impession that there is something most of us dont have any access/information about. hence the very high failure rate for retail traders? any ideas??
There's trading off level II/orderflow/time and sales, that's what I've always done. Also news trading... how much do you pay for bloomberg etc, +do you have a network setup to get you stuff before it hits the wire?
Hi NY. I was editing my post as you replied. In the case of the guy from T2W, he disregarded trading from the DOM so this wasn't the case for him. In fact he discounted EVERYTHING that any of us in the thread could think of! Might be the answer as far as Lescor is concerned though. Although, lots of people WOULD call trading from teh DOM/L2 etc 'TA'. CHEERS
Good man. OK, that's got the ball rolling. Something I hadn't really considered (although i still think there's something else!)
I really can't think of anything else. You are either making decisions from the "raw data" exclusively, raw data as it is shown on a chart (TA) or raw data as it is analyzed fundamentally. Nice nic by the way.
You little peeps. Information is how trades are made in the real world. Not looking at the past. Seriously, no wonder most of you lose.
Interesting you should say that. Here is a quote from the T2W guy: "My view ( one familar to other successful speculators that I know) is that the past has no relevance as in order to be successful the here and now is what matters, not the past. I thought it reasonable that readers would also realize this and understand my comment! No matter what behavior is reflected in the chart, nobody, except someone manipulating that market, can know with any semblance of certainty whether the next tick will be up or down and therefore a trend continuation or the begining of a reversal" Note, this is the guy who also discounted level2/DOM/timeandsales etc etc. Doesn't all information come 'from the past'?
All real world information (data) is based in the past. The moment a trade is posted is is "the past".
Current info would really be data points like news, change in interest rates, etc.. and you would use it to compare the current potential for an instrument to the past potential of said instrument to gauge whether price should be different and how much... TA is exactly the same thing but it's discerned differently.
Seasonal patterns Intermarket Analysis Political cycles Interest Rate trends Sector Strength to name a few.