Why Is The Obvious Not So Obvious?

Discussion in 'Risk Management' started by nysestocks, Jan 25, 2009.

  1. I would say between 5 to 60 minutes from the market open time there will be mostly a signal, based on price action "against" time, which we call as momentum. In my experience the signal generated in this period is highly successful, may be because of the support from the third dimension, volume, which is generally more in the market open hour, plus the fourth dimension, fresh morning mind of the day trader. :)

    Price momentum is two dimensional compared to time or price action which are single dimensions, and decisions based on the momentum may be more solid than just time or price action.

    Higher the momentum (more price action in less time), greater must be the time frame for a safer and more successful bet.

    https://www.elitetrader.com/et/threads/breakout-strategy-help.305641/page-2#post-4385322

    From momentum trading perspective, apart from the early market open time, there can be signals anytime during the day trading. :)
     
    Last edited: Feb 1, 2017
    #5671     Jan 31, 2017
  2. wtfauoa

    wtfauoa

    Simple really, if you have been round long enough to filter thru all the bull and hype.

    The first 30 min "usually" has increased volatility, which of course means movement in both directions. Also, 10:00 is usually considered a major time, and at times price can indeed make a sudden move just after 10:00, but things have changed slightly over the last decade.

    Of course every day is different, and at times there can be some great moves at any time, but, in general, on "normal" days, the first 30 min can offer far greater opportunities than any other time.

    I will say though, not applicable to all markets!
     
    #5672     Feb 1, 2017
  3. wtfauoa

    wtfauoa

    And what pray do you mean by a "signal"?
    Not some form of TA drawn on the chart I hope, as for a minute there it looked like you might know a little bit.
     
    #5673     Feb 1, 2017

  4. Technical charts (eg. moving averages) are not my cup of tea : https://www.elitetrader.com/et/threads/day-trading-basics.305348/page-7#post-4383960

    And technical charts are a learning curve in this analytical world. So I give all due respect to trading based on technical charts.

    Next comes price action strategies. That is also part of learning curve and a better way to trade than using technical charts, still I wont say a very professional approach.

    I suggest simple momentum trading strategy as it aligns well with the trial and error psychology of trend trading.
    https://www.elitetrader.com/et/threads/day-trading-basics.305348/page-4#post-4380964
     
    Last edited: Feb 1, 2017
    #5674     Feb 1, 2017
  5. wtfauoa

    wtfauoa

    You can forget about posting links, as waste of time. If you are a full-time daytrader, what symbols do you trade and when (times of day) do you trade them. A simple question.
     
    #5675     Feb 1, 2017
  6. algofy

    algofy

    Same question back at you. Are YOU a full time daytrader and what symbols do YOU trade?
     
    #5676     Feb 1, 2017
  7. I do day trading using a simple momentum strategy, which is a general one and can be applied on any symbol. BTW I trade full time on Index options. Regarding timing, anytime i find my trading signals. :)

    When you say links are waste of time, I assume that you are not assuming links are waste of time for every one here, like a moderator.
     
    Last edited: Feb 1, 2017
    #5677     Feb 1, 2017
  8. algofy

    algofy

    He probably does believe ALL links are a waste of time.
     
    #5678     Feb 1, 2017
  9. I agree everyday is different.

    Do you believe the way you enter will change over time ?
    Do you believe your way of trading will still work for you in say 20 years from now ?

    On another note.
    What are your thoughts on Gaps ?
    What are your thoughts on the previous days Value area ?
     
    #5679     Feb 1, 2017
  10. wtfauoa

    wtfauoa

    You are very inquisitive :)

    The way I enter and exit will never change, just the price at which same happens.

    The way I trade will always work, in 20 years from now and more than likely in 200 years from now.

    Gaps offer very good trading opportunities.

    The value area is over rated as per market profile technique, but I have come across an individuals take on trading the value area that made perfect sense to me in relation to short term trading.

    Anything else :)
     
    #5680     Feb 2, 2017