You are mistaken, the so called morons are the ones that trade based on what they think, not what they see. How many times you see posts saying "I think price will...", now ain't it better to say "I expect price to ... based on a pattern that I am seeing". So "trade what you see" is geared towards people that use their emotions, when they should be using their rationale instead I am certain there are quite a few people out there trying to decipher price action following tomorrow's NFP numbers. Perfect mind trap. If NFP comes out negative they would be ready to do what they have decided to do today. There are companies out there spending millions of $ on research, how the hell can a retail trader know how to read a report? Surely it's better to wait out reactions and act upon development, rather than predict.
Very well said! All trading. of course involves prediction of the future. But the phrase "trade what you see" means wait until the market shows you what it is likely to do next. Never trade on what you think the market should do next. Let the market tell you what it is likely to do. Someone said here on these ET forums, "trading on the basis of what you think the market should do is a sure trip to the poorhouse." And how true that is. Be patient and let the Market SHOW YOU what it will do next.
YoungOne, bellman, JSSPMK, and piezoe all of you GET IT! The rest of you are either shlubs or shmucks; probably both.
very, very carefully, but with great enthusiasm, and typically with little capital... sometimes I have money management going and sometimes it's time to fix breakfast and I forget the money management thingy....
Good scalpers understand what "I trade what I see" means. Most other traders just don't get it. To summarize, it means being able to trade the price action for quick scalps. A good scalper can type up a stock they've never traded and make quick decisions based on the speed of the prints, the way the bids or asks are stacked, if a stock is printing through the inside prices, which players are on the bid or ask, the stock's short-term chart and the immediate direction of the futures. There is no need to know the macro picture to make a profitable scalp. A trader must know what the risk-to-reward on the trade is. "I trade what I see" is a term understood by all veteran scalpers. Newbies just won't have a clue.