the ryhthm of the market

Discussion in 'Trading' started by nwbprop, Jul 18, 2002.

  1. I have not started trading at a prop firm yet but was wondering if good traders use the rhythm of the market to trade. Actually, what i am really trying to ask is whether their is a rhythm of the market and if it is important in trading. No one really seems to discuss it.

    Also, i don't see why trading HAS to be so stressful. Cant it be looked at like a game or videogame and be fun. I understand that some videogames are stressful but the benefit one receives from the fun of the game should outweigh and diminish the stress.

    just some thoughts....all replies are appreciated.

  2. I try to get in a rhythm for the particular stock I'm scalping, but sometimes I get out of sync. It's better to develop some hard and fast rules that don't rely on you getting in a "rhythm."

    Elliot Wave Theory is also based on "rhythms" but it can't be reliably applied to trading.

    Trading can be fun and not stressful if there is no real money involved. Unfortunately, this is not the case. It's not much fun when you're down a couple of grand.

    You can't treat trading like a videogame. It must be viewed as a profession and alot of hard work and dedication is involved. The videogame traders did well during the bull market but have not adjusted well to this market. Those who treat trading like a serious profession are more inclined to succeed.
  3. Yep. I totally agree. Nothing in this world is inherently stressful, only the mind can make it so. Your post is a refreshing reminder that I truly enjoy what I do - something that's easy to forget after a, er, "trying" day like today (for me).

    I'm not sure exactly what you mean by the "rhthym" of the market. Do you mean adhering to strict entry/exit rules no matter what "vibes" the market may be giving? I don't use any rules based system so I'd have to say I go more on the "rhythm". I guess I can put days like today down to not being "in sync" with the market.
  4. ttrader


    I don't think it's stressful, plenty of tension, yes, but not stressful.

    I just have to sit in front of my monitor an do some mouse clicks based on some decision systems, that's all !!

    In comparison to real work out there in the world this is like eternal vacation ...
  5. Bono


    Stress comes from losing money .. in a video game you throw the money in advance, play, enjoy and forget about it all ... in trading you throw the money in advance, and await to cash it back later with some profit .. when instead it starts eroding ... you can't avoid but getting stressed ...

    However, after long years of trading ... experience builds up ... and trading becomes much more enjoyable than before ... you master that art, but stress still sometimes finds its way ... I guess it's part of the addiction :)
  6. Enjoying what you are doing and being dedicated to the task are most definitely NOT mutually exclusive. Whilst I can't imagine anyone finding the process of losing money to be "fun", it a necessary part of the game and must not be weighted disproportionately (stressing over one aspect).
  7. The rhythm is constantly changing from one group of candlesticks to the next (whatever time framework you are using)... are we trending? are we oscillating? are we ranging? is volatility totally lacking?

    Identifying the various rhythms in a timely manner is imperative... moreover, using a suitable strategy to capitalise upon the rhythm of the moment is vital... many of us choose not to trade various rhythm categories, in which case sitting in cash is the best proposition...
  8. GOldenarm,

    "You can't treat trading like a videogame. It must be viewed as a profession and allot of hard work and dedication is involved. The videogame traders did well during the bull market but have not adjusted well to this market. "

    Those who love a videogame will spend hours of dedication to master and learn the in and outs of the game. Although the hours and hours of dedication are involved, it is not considered hard work because it is fun and what we would like to spend our time doing anyway....its a passion. Just showing my view compared to yours Goldenarm. I hope that this kind of attitude would not fall into the vidogame traders genre that you said will not do well in the new market.

    based on your opinion it would be a godsend then to be at a prop firm where you use their money to learn. therefore, not giving the money up front to the market....althoug it is still possible to give it away down the road. Is this congruent with what you are saying? just wondering

  9. PubliasEnigma

    PubliasEnigma Guest

    Goldenarm and Bono,

    You guys do realize that you are the ones making it stressful right???

    If you are pained by external circumstances than it is not they that cause you pain, but your perception of them...

    I very very very rarely am ever stressed playing this game...
  10. just plain overtrading and worrying about every little squiggle during the day will drive most people nuts eventually even if they are winning. Studies have proven that adverse market moves are much more powerfull than moves in your favor when it comes to psychology.
    #10     Jul 18, 2002