TA - Objective or Psychological Skill?

Discussion in 'Technical Analysis' started by cornix, Jun 11, 2013.

  1. Only if your willing to mentor.I`d be curious to see it from the other side.So far,the progress i made was based on the subjective TA.

    Something like this:
     
    #61     Jun 11, 2013
  2. Lucrum

    Lucrum

    No, but lack thereof can turn a "winning" system into a losing one.
     
    #62     Jun 11, 2013
  3. cornix

    cornix

    Concept of past prices affecting future prices is not ridiculous at all. Furthermore, this concept is much similar to the reflexive theory presented by George Soros in his "Alchemy of Finance". Market participants see prices changing and base their future decisions much on that PRIOR price action.

    As for tests, before I see every parameter of testing and how exactly testing was performed I can't say were they rigorous or amateurish.

    And if money management alone was the key to consistent profitability, why trading is to hard?
     
    #63     Jun 11, 2013
  4. cornix

    cornix

    Moving averages can be objectively and very successfully used as a LEADING indicator.
     
    #64     Jun 11, 2013
  5. cornix

    cornix

    There is. What differs successful traders from losers is that first know patterns truly well, including nuances of truly profitable patterns, while losers believe if they read about a pattern in a book they are experts. :D
     
    #65     Jun 11, 2013
  6. cornix

    cornix

    Yep. I know very successful traders who also use stochastic for that purpose. And it's a leading indicator for them, not lagging.
     
    #66     Jun 11, 2013
  7. cornix

    cornix

    Yet it still takes certain level of intellect to understand the basics of quantum physics. You unlikely could explain it to a monkey. :D
     
    #67     Jun 11, 2013
  8. cornix

    cornix

    Yes, that's exactly what I mean. Objective edge must exist in your trading decisions. It can be very nuanced and thus unlikely possible to automate (on computers of our days, maybe in future it changes), but it's still objective.

    The rest just makes sure that edge is applied properly. Psychological component is extremely important for that reason: without discipline even objective edge will not help. And it takes a lot of time and learning for people to find their edge and learn to use it as an objective edge, without psychological traps most traders fall into.
     
    #68     Jun 11, 2013
  9. cornix

    cornix

    Wrong. If I enter/exit trade based on 1,2,3-like algorithm it's an objective decision making process. Either price action satisfies the set of my rules or it doesn't. Nothing subjective there.
     
    #69     Jun 11, 2013
  10. cornix

    cornix

    Agree. Basically it just requires a lot of patience and be willing to do the hard work. A lot of it. Studying charts for months and probably years, then carefully collecting statistical information, spending endless hours in Excel is not something most think trading is like.

    In reality it's extremely boring and draining work. Both the research and trading itself. Patience and focus.

    Ironically, this business attracts just the opposite: born gamblers who like excitement. And correct trading, just like correct poker is very dull, not exciting at all.
     
    #70     Jun 11, 2013