------------------------------------------------------------------------------ I started out with 1. I then learnt some TA but not enough for me to time the market adequately. I then tried out 2. but only half-heartedly, and the market changed with ONeill's Cup & Handle breakouts failing left and right. 3. never quite worked for me. I've leant towards TA more heavily since the fourth quarter of last year, and felt more confident after making up my mind to develop more concrete trading stategies--whereas before I was more discretionary and visual. The following is my strategy for two timeframes: A. For long-term retirement: FA 50% (mostly value funds) TA 50% B. For trading (ranging from several days to weeks): 1. FA 0-5% (mostly for scanning and prospecting) 2. TA 75%+ 3. Sentiment 15-25% (Yes, I still believe in long-term investing, albeit with much less allocation to stock funds than when I first started out. Actually, I've done quite well managing our retirement accounts, but there is still more for me to learn to trade short-term.)
Actually, that is a bit better than the QQQ site I subscribed to. The only problem with day trading is that by the time you read the entry from the chat room, the trade is gone. It is just too quick to write down.
1) Traded derivatives-used neural net to time OEX and SPX..was not consistent lost money. 2) OTC SOES trading back in the good old days (lol) helped design and test first version of Cybertrader in Austin TX. Used Futures TA as leading indicator and looked for good charts and level 2 set ups. Ouch the learning curve, but great once I figured it out. 3) Worked with hedge funds to build new streaming analytics based on TA. Demings math concepts! Very simple and very powerful that is what our alerts are based on.
I started wtih FA, and as I got in, the bad news would start to come out. I then learned TA, and got good at it on a short term basis. Now I'm trying to completely figure out O'neil's CANSLIM that combines TA & FA. The only thing that has stopped be from being really profitable, is my emotions on the long term side, and not being able to sell out at the right time. I got those emotions in check for day trading, but still working on the long term. Patterns, patterns, patterms, they repeat over and over and over like clock work. Wouldn't it be great if we learned to control them in one aspect, and then apply to other aspects of trading and life?
I always thought it meant FUNNYMENTAL. Microtraders- FA Useless Intermediate- 70% TA .......30% FA Longterm- 50/50. All the above numbers and FA in general is useless when the number are fabricated, manipulated, and just plain wrong. PRICE action is the only thing that maters.....reflects on your P/L better than a PE or Net Income. Estimates are just that...Price Action is actual fact. The swing back to TA is due to the fact that FA got smoked over the past 3 years. It will come back...but TA is still king. Look at the Wyckoff Method for your longterm TA. The market principals are very accurate when applied properly.
it used to be that a bad fill was something you could overlook. lately it's been eating into the edge. decimals have contributed to this.