Apologize for me poor language. Never introduced after making a couple of posts. Im some self educated momentum genius from the Netherlands. The one with the big mouth.. Studied business informtion technology in the past though. Never scored sufficient marks for english ever but.. fortunately its about making money, isnt it?! In years youll probebly all say: despichtt, yeh I know him; used to chat with him!! Then they wont believe you..
Im sorry.. Cant control my euforic feelings sometimes. Hope I didnt scare the big guys. This has been an outstanding thread to me makng me aware of a lot of things. Any beginner, searching for good ideas should reed this thread!
Im studying news pre markrt; trade any story on good volume. I like to watch 12 of them on graphs at the same time. Try to predict some action before open. When it confirms on the first actions I jump onboard. When Im wrong I like to get out fast perhaps try another time. Ive been studying moves on open after earnings and other big stories on allmost 500 stocks(mainly S&P 500) for three qurters now. You can allmost feel things happen in many occasions if you did your homework on the past! Also like to trade the 10.00AM and 10.30AM news stories with my favorite stock for each game(ISM; EIA; Housing etc..). I like to play this stories a bit longer; looking for some momentum. Afer 1130AM, Im hungry(Netherlands).. Probably call it a day!
Usedtowork!? Are you still out there somewhere?? Your way of trading is the way to go for me. Ive been studying mosissues you wrote. Wuld be very intereting to hear more from you! Please add to the discusion! Everybody else as well! We have to learn from eachother.. Tell me those secrets; please open your hart!!
You can't automate gut feelings, and this is why traders will always have an important role in the decision making process. This is why I think gray-box tools have such an important role in the future of trading. You have the best of both worlds: The execution speed and accuracy of a machine and the discretion/adaptability of the human trader.
Over the years, grudgingly I have found trading to be more art than science. I often wish it were all science, then all we would need is the magical golden key. But it doesnât work that way. Even more important than art however is the psychological aspect. This has to do with emotional fear of loss and greed of profit. Science might explain this, but it still is a big issue. All traders have to deal with it (big and small). Today it nipped me in the butt already as I got out of shorts in the S&P and the market turned and tanked soon as I got out. Sometimes I think markets behave differently when I am watching it... Does anyone else think that? In the world of quantum mechanics, scientists have discovered certain small sub-atomic particles change their behavior when they are being observed. They seem to have a "free will". I think the market works like that; it has its own "free will" and goes where it wants. When we observe it, collectively we change its behavior too. -Floyd
I agree Floyd, trading really is part art part science....this is why people that build fully automated trading systems, without any human intervention or monitoring get burned big time in the long run. Fact is there are certain events that are difficult or impossible to model. For example, how do you get a machine to understand the meaning of an FOMC statement, and then change your trading model...not an easy task. Although machine learning is certainly making great strides, fact is that the technology to replace the human trader just isn't there yet.
I use to be in the "art" group but trading index futs like the ES is DEFINITELY more science. Stock trading seems to be a lot more art.