How does a "reverse trader" make any money if he doesn't hold for the "trend" following the "reverse"? OldTrader
I have asked ProfLogic to tone down references to his site and cut back on the "self promotion". Anyone with interest in promoting services can contact Baron to become a paid sponsor. Now ... let's get back to the very good original question posed by Flashboy.
Good question! I usually do not care if the position that I take will end up to be a trend for I usually exit based on specific profit targets that ideally corresponds with either the price and volume chart or the median on the "channel linear regression." I careless if the it continues for another 50 points after my exit. If it does, I will not beat myself over the lost opportunity, instead, I will be looking for that trend to fade so I could reverse it. Having me saying that, you really need to know how the smart money like to play their game in particular market you are trading. In my case, it is the NQ and nothing but. Cheers
Nothing helps a trader in doubt quite like 49 pages of suggestions from different styles!! Here's mine: MA's on candlesticks (daily, weekly) for long term, market profile for intra-day and scalping (add splits, it's right there). Success, CB
Yes, in a sense, price can only do one of the 4 things. But what are you trying to say here? Can you trade profitably knowing that price will do one of the 4 things but not knowing which comes first or the different manifestations of these simple classifications?
John, Your skepticism is that of any serious mathematician smelling foul odors. Applying common derivation to diffusion processes is nonsense. Long time ago, people used to treat such problems in a non-rigorous manner. Diffusion and Brownian motion problems have to be treated rigorously by applying 'Stochastic Differential Equations' (Ito). However, for many such processes, probabilities can be shown to obey partial differential equations in the commonly understood sense.
Cognitive Dissonace take 2. Gee thanks for pointing out what I already was referring to in my post, i.e., Ito. Did you even bother to check out the link before shooting your mouth off like a Cannon? Here it is again: http://www.mathserv.okanagan.bc.ca/math/math414/walk/Ito.htm Anyone interested in rigorous derivations, etc, would be better served by referring to one of the standard texts on Stochastic Processes and Fin Maths, like - for example - Karatzas and Shreve, Billingsley, Shiryaev, etc, etc...
Hi equalizer, No, my eye fell on John's rightful comment. In my attempt to wade through the mass of prior posts, I missed your shining nugget burried in it. Sorry to see you so worked up about this. May I be forgiven, nononsense
the stock will go up, the stock will go down. it is impossible for it to do anything else. anything else, genius ? i think the "chanelling stock" people and wade cook beat you to this idea by several years. you are way behind the times.