No doubt--- money management is everything without having a quantifiable edge. If you don't understand how to get a real edge, money management is all you have. Edge is understanding what drives the price prior to it moving, not following the movement ( self defeatist) but it may result in profits if you are highly skilled at money management as will any entry.
That book was written in 1987---- How many in the latest marketwizard SAY they use TA? BY the way, those guys mostly make money on FEES, they don't count as "rich traders". You really shouldn't talk about things and people you only read about. Remember, deception is a KEY part of the market..... but today, even saying you use charts ( for trade decisions in real time ) is worn out... no longer has the impact it once did, pre PC Im interested in how these guys trade NOW, not in 1987-- here's a clue, its not with TA.
Can someone please explain, for the love of clucking Christ, what there is that isn't "in the past" the instant an instant passes? Throwing the phrase "in the past" around like it is some kind of relevant critique in and of itself is nonsense. It's a given. Some people know how to use the past better than others. Why humans would be differentiated on every skill except for that one would be interesting to hear about. One guy can use the past to make some sense of the future and another guy can't or can't as well or as consistently. Just like every other skill. The way in which each person is constrained by having to exist partially in the past and partially in the present differs from person to person. Even in your example of GSAM dumping 10,000 lots, why would they be doing that? Obviously because of something they've just seen, i.e. something "in the past". Or are you saying that not only do they have a "crystal ball", that "crystal ball" uses information from the future to point GSAM in the right direction? That's one hell of a crystal ball. Think about what you are implying with your example, not just what you are saying.
Maybe it depends on how one defines a "trend". If PA shoots past the last HI or LO pivot, it's trend enough for me. Pull up a 5 Min chart and see for yourself. Amazing to watch it real time. The FIRST pullback is the most Valid one. I'd be happy to show you what I"m "seeing", if you wish. Ian
Surf....you still have to have money management with a "quantifiable edge" . Come on man. I don't care if a guy trades your way or is 100% TA. Without risk management he will fail. Risk management and Money management are #1 and #2 on the list to being a great trader. #3 on the list....which can be a whole variety of things...is far below the top two. Having what you call a "quantifiable edge" is 1000 miles down the list at #3. Just look at the guys who traded from 1996-2000 who had no risk management...they are all gone. Back then with the markets swinging wildly they would routinely get bailed out. I traded with some real bright guys who had "quantifiable edges". Started a hedge fund with one guy who was a genius and had these quantifiable edges. But he lacked proper risk mgmt and took monster losses at times.
Do you think a trader who did nothing but watch charts all day long could be an exceptional trader if he said the reason for his success was his money management or his decision-making process after entering a trade, instead of saying that charting was the reason?
I've just had an epiphany: I'm the only drunk with a full bottle of whisky. The other drunks are all discussing how much whisky is left in the empty plastic bottle of 7-up. I better GTFO of here... back to chitchat!. At least there are hot pics of singles, twins and triplets there!. Short more ES!. Si!. Target 1318.