what can be predicted and what cannot be in the market?

Discussion in 'Trading' started by mute9003, Jul 7, 2021.

  1. mute9003

    mute9003

    im stuck at a point where i dont know what i dont know and its messing up my trading. i always think that somethign i did can be predicted if i had more information..
    so i want to ask what parts of the market can absolutely be predicted with certainty what can be predicted somewhat accurate and what absolutely cannot be predicted
    as a trader

    and what is out there that bigger institutions can predict by using algorithms and computers etc...
     
    tayte and SimpleMeLike like this.
  2. maxinger

    maxinger

    That is a complex but straightforward question.

    In trading, nothing can be predicted.

    We just focus on the charts and REACT to them.
    ie we have to stare at the screen for many many hours
    looking for opportunities / patterns / signals ....

    millions of people cannot tolerate staring at the screen for
    many many hours.
    so they come up with ideas like automation and those things.
    will it work?!?!


    Don't trade based on anticipation / prediction.
    those who trade based on anticipation / prediction
    probably don't have to stare at the screen for many many hours.
     
    Last edited: Jul 7, 2021
    easymon1 likes this.
  3. mute9003

    mute9003

    i mean there is gotta be some things that can be predicted to some degree?
     
    tayte likes this.
  4. No, you can layout "possible outcomes" and know what you will do based on those contingencies. Then react as the market unfolds.
     
    MACD, longandshort and easymon1 like this.
  5. mute9003,

    If I can absolutely predict the market direction, I be chilling with these fine ladies every day.

    You have to stare at the chart and quantify a trading edge, then trade.


     
  6. Lol don’t stare at a chart. Educate yourself on asset pricing and market structure. Stock prices are generally non-stationary geometric random walks. You cannot predict the next price of a stock. Stop trying to predict the price and instead try to predict outcomes of events (and what to do if you are wrong). Google “investment thesis” for tips.
     
  7. easymon1

    easymon1

    Pretty much a mortal lock that stocks don't trade on Saturday Night EST.
    That could change too considering the myriad of events we see today that were unthinkable decade or two ago.
     
  8. easymon1

    easymon1

    What timeframe charts do you want to trade?
    If you Could Predict something, as opposed to estimating the probability of an outcome, what would it be that you would expect to be one of the things that can be predicted to some degree?
     
  9. deaddog

    deaddog

    Name one.
     
    bone likes this.
  10. mute9003

    mute9003

    well is your profit to loss ratio is above 50% arent you predicting the outcome with more than 50% probability?
     
    #10     Jul 8, 2021
    Illini Trader likes this.