Trader Success: Supply & Demand / Buying at the "Right" Price

Discussion in 'Trading' started by Bullz n Bearz, Jul 3, 2007.

  1. Hi ET, this is yet another thread by me that will address the supply and demand model that goes on in the markets and to profit from it. Note: This is all theory, I am currently in a loss with my trading company, so don't take any of this information seriously. Just take it as food for thought.

    Now, I have come to a conclusion after all my struggles and learning that getting a good deal in any market (buying at a good price) is the deal breaker for being successful in the long term.

    Knowing who wants the product you are choosing and how much of it is another huge factor. So, aside from getting in on a contract at a good price, I also suggest knowing if the contract is in high demand. If it is, you should be able to be profitable.

    The reason I lost so much money in the markets last year when I just started out was because I entered my positions at some of the worst times. I'd buy before a pullback, sell before an up rally, and what not. Now, I know better.

    So what do you all think of this post/theory? Does it make sense to you and where you are currently at as a trader?

    Let me know!
  2. lescor


    It's ALL about the exit. Snakeoil salesmen will sell you the "secret rules of when to buy" but not tell you anything about when to sell. When to sell addresses things like risk, money management, bet size, etc which are the essential guts of a good system. The entry ranks much lower in importance when looking at the whole picture.
    777 likes this.
  3. Listen to lescor... it's all about the exit.

    As for entering at the "worst" time, that observation is based purely on hindsight. While post-analysis may provide insight to help avoid pitfalls of an entry (aka "better") it makes no difference unless/until you execute an exit. The market does not know or care where you enter. The market only gives or takes money (aka the market "cares") when a closing trade is made.

    There is an old point proving story, something like ...
    For 1 week, give tomorrows newspaper to 10 people(traders/investors/etc).
    • 1 will be profitable 5 days of the week.
    • 1 will be profitable 4 days of the week
    • 3 will be profitable 3 days of the week
    • 2 will be profitable 2 days of the week.
    • Of the remaining, 1 will b/e for the week, 1 will lose on the week, 1 will not trade.
    Is entry or exit the deciding factor?

    Osorico :)