Swing traders are much concerned about news and events. Day traders are either scalpers or trend traders, who won't be much bothered about news and events. Many swing traders bet on two days high/low on daily basis. Some of them may bet on news and events. Some of them may try to avoid gap-ups and gap-downs caused by news and events. Overall market is well balanced. Everyone wins those who know what they are doing. I am a day trader and I do trend trading, not scalping. I know what I am doing. I get what I want Basically you cannot compare the approaches between day trading and swing trading. They both are unique. But for retail traders day trading on index is much safer and away from gap-ups and gap-downs. I always suggest swing traders to develop chart reading skills. My chart reading skills on intraday chart and extraday chart are equally good. Only thing is I don't see much earning potential in swing trading, apart from the dangerous gap-ups and gap-downs. I have a balanced understanding on stock trading which is rare among traders. I won't be surprised if i am not appreciated for my insights. You seem to be highly concerned about news and events like some swing traders do. If it brings you profits I am happy for you.
"I have a balanced understanding on stock trading which is rare among traders. I won't be surprised if i am not appreciated for my insights." So have a trade room? Have a track record? Have any publications ? Have any advanced degrees ? Have a single particle oh achievement to substantiate you are balanced stock trader and that you are rare among traders? Sounds to me a lot more like hubris and self promotion.
I have been constantly saying universities have miserably failed to produce businessmen and that academic language is losers language in business, including stock trading...and this guy is asking me if I have an advanced degree ....degree is for day job, not day trading. And this guy doesn't realise that online forums are media, crowdsourced magazine, where people generate the contents. Every thread here is either q&a or discussion or article. Thousands of people allover the world read forums contents and connect with people. Majority of them are unregistered visitors so couldn't post their thoughts in forums. I am a passionate trader who is constantly learning and love to share my thoughts. I am a proud content creator in this crowdsourced magazine. Simple! People like this guy doesn't seem to value crowdsourced content. He is asking me academic background, publications, etc, as if they help traders. Stock trading is a combination of... 1. Disciplined mind 2. Emotional intelligence 3. Trading skills Business is 80% mindset and 20% skills.
Indicator Signals: Technical analysis relies on numerous indicators, such as moving averages, oscillators, or trend lines, which are believed to provide signals about potential market reversals or trends. Traders use these indicators to generate buy or sell signals based on specific criteria. Proponents argue that these signals can offer insights into market sentiment and help guide trading decisions. Self-Fulfilling Prophecy: A common argument in favor of technical analysis is that if enough market participants believe in the effectiveness of certain patterns or indicators, they may act accordingly, creating a self-fulfilling prophecy. This means that the collective actions of traders following technical analysis principles can impact market prices and reinforce the patterns being analyzed It's important to note that while technical analysis has its supporters, critics argue that it relies on subjective interpretations, lacks a strong theoretical foundation, and may not account for fundamental factors driving market movements. Additionally, market conditions can change rapidly, making it challenging to rely solely on historical price patterns to predict future outcomes.
The streaming of data (time, price, volume) into our chart is the only tangible source for stock traders. Everything else becomes subjective. If a trader realises this solid fact he will not distract away from chart.
Swing traders are like silent partners in stock trading. Day traders are like active partners in stock trading who constantly move the stock market. News and events makes swing traders react strongly. But their reactions won't move the stock price. Day traders react moderately to news and events. Their reactions are evident in chart, yet in a gradual matured way, not in a hurry. Thus intraday chart is matured reflection of stock market and predictable for seasoned eyes.
While there are different trading strategies and approaches in stock trading, it's important to note that the effectiveness and predictability of these strategies can vary based on individual skills, market conditions, and other factors. Here are some points to consider regarding swing trading. Swing Trading: Swing traders aim to capture shorter-term price movements within a larger trend. They typically hold positions for a few days to several weeks. Swing traders often analyze charts, technical indicators, and market trends to identify potential entry and exit points. News and events can impact swing traders' decisions, but their reactions may not have a significant impact on the overall stock price due to the larger market dynamics. It's important to understand that both swing trading and day trading involve risks, and success in either approach requires a combination of skill, experience, and market understanding. The predictability of the stock market is a subject of ongoing debate, and it's challenging to make definitive statements about the predictability of intraday charts or the effectiveness of specific trading strategies. Traders often develop their own methodologies, combining technical analysis, fundamental analysis, and market sentiment to make informed trading decisions. It's recommended to continuously learn, adapt, and practice risk management techniques to navigate the dynamic nature of the stock market effectively.
It is very simple fact that human behaviour is predictable. Chart represents collective behaviour of traders. So it is basically predictable.
You are correct in saying that human behavior is predictable to a certain extent. We all have certain patterns of behavior that we tend to follow, and these patterns can be observed in the charts. For example, we tend to buy when prices are rising and sell when prices are falling. This is because we are naturally risk-averse and want to make sure that we are not losing money. However, it is important to remember that human behavior is not always predictable. We are all capable of making irrational decisions, and these decisions can have a significant impact on the market. For example, if there is a sudden news event that causes panic selling, the market can move very quickly and unexpectedly. This is why it is important to use chart analysis in conjunction with other factors, such as fundamental analysis and news sentiment, when making trading decisions. By doing this, you can increase your chances of making profitable trades. Here are some of the factors that can affect human behavior and make it unpredictable: Emotions: Our emotions can have a big impact on our decision-making. When we are feeling fear or greed, we are more likely to make irrational decisions. FOMO: Fear of missing out (FOMO) is a powerful emotion that can drive prices up. When people see that others are making money, they are more likely to buy in, even if the price is already high. Herd mentality: People tend to follow the herd, which can lead to market bubbles and crashes. When everyone is buying, prices tend to go up, and when everyone is selling, prices tend to go down.
True. Trader must know that chart is not always predictable. He must wait for predictable patterns and take relevant action upon them.