. If you are going to trade an auction, surely you should have an understanding of how price moves in such an auction, right?
No, I don't believe you do. Sure it helps but not necessary.
If I'm buying a car, I find the model, price ect. and then I bid, other bidders bid and drive the price. If it goes pass my price I have a decision to make.
Granted, you can only go long and prices don't retreat, tho' subject to manipulation as I found out once.
I was buying a car and the crowd was small and I noticed the mechanics from next door were bidding but never actually bought. And some punters got scammed.
I'm sure I've seen it on live charts and a few years ago some pommy b@stard was stung by the ACCC for manipulating the Aussie 200.
However knowing it happens I cannot see how it improves ones trading of the markets. Unlike the mechanics, we cannot see the manipulators.
You use whatever price you think is a fair thing and go from there.
You only know one thing for certain....it will move.... and that's all and everything
we know at the time of entry.
To attempt to trade something without even the slightest clue about the market you are trading is asking for trouble.
Sure but everybody has to start somewhere.
But that is no where even close to the problem that people have of not REALLY knowing their attitude to money and risk.
You make money with directional trading by pre-empting price moves up and down. These price moves are the result of a reasonably simple auction process. I don't see any benefit in not understanding the way the auction works.
Agree again but not necessary. The ONLY way get that knowledge is experience with real money. Even then, I doubt if anybody in the entire history of trading actually fully understands what moves the markets.
Well - here's the thing. You trade the auction, whether you like it or not. You do not trade candlesticks. They are merely a representation of what occurred with price in the auction. You can tell yourself you are trading candlesticks but you aren't.
Agree again....I cant believe were agreeing on so much and yet we can't agree.:cheesy:
Some people need to know details before they can act. I'm a bit like that myself but I admire people who can just do it.
One person trades only his candlesticks, another trades his candles with a good understanding of how markets move. It'll be the one with best self understanding that'll do best.
Mike Hailwood was one the best motorcycle racers in the world, perfection personified on two wheels. Also known for not understanding how to set a bike up. Mechanic would make changes and say how is it Mike? But Mike wouldn't know. So a mechanic would have to take it for a lap. Mike just rode it fast if was good and rode just as fast if was bad.
I'm glad no one ever told him he would have to understand suspensions and gearing to be able to ride fast. Having said that, most riders do at least have a fair understanding, some better than others. Some had brilliant understanding but never went to great heights as a rider. Warren Willing comes to mind but went to become the man that looked after Kenny Roberts bikes (one the greatest riders of all time)
"Where are they? I've never met one."
It is boring but it is true. Retail trading is like a parallel universe to the Professional Trading world. The two bear no relationship and the techniques espoused by most retail trading experts are hogwash.
All I can do is shake my head.
These concepts were not invented by venders or retail traders. Yes, used by them endlessly these days because every one's got a computer.
I will also except the fact that many of the indicators and candlesticks probably worked better in the old days because few people knew of them and believe it or not, I think hand drawing them gave some sort of better insite. A bit like watching volume coming in real time is very different to looking at a historical chart with volume.
One swallow does not a summer make.
Lets put it this way.
At these moments that Dutch was talking about......
We could have gone in randomly at these points, I mean fair dinkum random, not a system that is tilted this way or that way. At best it can only get 50 % chance of getting it right. Still could be profitable tho' but then again totally random could have easily missed these opportunities.
Or......our poor dumb ass punter with big dreams who read a book about the engulfing candle and as naive as could be jumps in and gets 7 out of 7.
And be the laughing stock of T2w
Might not make him a great trader but he'd be profitable....if he had the self discipline to make it his only trades. But that's the impossible dream init?
Trading should be unbelievably simple but we mess it up in our own heads with all this academic bulsht. (A reference to myself)
