You're correct. I've never said nor imply I was in the pit even though my old man is an ex pit trader. Regardless, please answer my question...how much of an impact does your "over a decade of market experience" have in your profitability. ??? Lets take this a little further, how much of an impact in your trading plan is money management, proper trading equipment, decent commission rates, proper capitalization and so on...does that impact your profitability...Yes or No ??? Simply, is your profitability exclusively due to TA regardless to what type of equipment you use, regardless to collaboration you may have in your office, regardless to any money management rules et cetera. Edit - I now see you answer part of the question (kind'uv) prior to this message post. In addition, no need with the condescending replies such as my lack of price action knowledge. I have not done such to you out of respect. Mark
I already answered the first part, so here goes on the second part. Trading plan is what I consider objective and fully rules based. Money management consists of tight stops only. Objective rules are for entry as well as exit. I trade on a up-to-date computer with multiple internet connections. My commission rates suck because I'm with a full service broker that whines he doesn't make enough off me. I like him though so I stay with him because I'm consistently profitable despite his high commissions. My margin is light because I have proved to myself over a long period of time I don't require over capitalization to be consistently profitable. My drawdowns are always very very small compared to my overall daily profitability. Oh, I'm not a scalper. I trade up to a few times a day, maximum, per chart.
I sincerely doubt you are using technical analysis. You might be using its tools like oscillators but you are not analysing the technical way, but the quant way.
How do you know what he is doing? He is telling you he is using TA....you just don't want to believe it.
Hi marketsurfer, only 1 out of 100+ traders in your firm is profitable? is that true? then how can the hedge fund exist?
Hmmm...interesting. My one quote response was not about a trader. It was about my Mom seeing a single price quote on her TV. Just as important, it was a question if she was using TA based upon a single price quote to make a trade decision. Yet, you choose to quote my other paragraph that involves floor traders that obviously do not use a single price quote for trade decisions. Regardless, I do not know any "floor traders" that have zero context other than one price quote who makes trade decisions via such. Summary - Profitable traders that say they use TA should realize that successful trading cannot be exclusively thrown at the feet of TA. Thus, those thousand of hours analyzing the markets = market experience in combo with TA. By the way, I do believe you use charts or even TA because that link you posted and recommended @ nobsdaytrading.com He mentions something interesting via saying you will learn...How to determine 'real' support and resistance levels and what to look for at those levels. Sounds like TA to me. No longer a problem. With that said, I think Fireplace dipped his feet into an interesting area of discussion called "market context". I don't think someone can profitably use TA without that context. Therefore, profitable traders using TA are not doing such exclusively without any help from anything else. I leave the above as my last opinion in this thread as food for thought. I based that opinion on my personal experience and the experiences of those I personally know as retail traders, floor/pit traders, institutional traders, prop traders and arcade traders. Most use TA (not all) but all do use some kind'uv market context regardless if the views is wrong or right....regardless if they use charts or quote screens only. Mark
You actually didn't say anything about someone actually placing a trade based on this, you just mentioned someone seeing the quote. "or whenever any person (trader or none trader) see price quotes on any financial TV network (e.g. CNBC, Bloomberg)... You're suggesting they all are using Technical Analysis. " If someone places a trade just based on a random quote, then what kind of analysis was done? Sounds like a random trade. I guess people can place random trades by just seeing a price quote, although the point of that escapes me and it really doesn't sound like any analysis was done at all, to be honest.