pttrader,
So don't tell me the numbers without the "why" are a waste of time. I simply DO NOT care to know the "why"! Don't need to!
No, all you have to do is do your best to factor in the manipulation. It can be seen in tape reading and in price action apparently something you do not do too often. But enough. Keep your noggin buried in the sand. Keep on with your so called "safe" trading methods.
There is only one of us with our head buried. I am always willing to learn anything that improves my ability to safely make money, alas, the same could not be said of yourself.
Naz,
Lets remember a $1 move in a stock can be a day's money for a day trader.I can make that in 1-5 mins with Google at times.If anyone out there can let me know a better way of taking and managing my position,please let me see it in action and if its better i'll gladly change.
But lets put this in context, GOOG is currently a $200 stock. Even $4 of movement represents a 2% price move, now unless you are trading your WHOLE ACCOUNT on this 1 position, what in reality is your ROC?
The only way people will build wealth is to return as high a CONSISTENT % on their whole account, preferably leaving in all or most of their profit.
As a daytrader I appreciate that this in addition to teaching traders is how you earn your living, and thus need to remove money for living expenses.
Consider this;
The maxim of daytrading follows somewhat as this, cut your losses quickly, keep losses small, trade only favourable risk/reward ratios, let your profitable trades run.
Now, assuming all daytraders are disciplined, and adhere to these basic tenets, then by definition for every winning daytrader who shows a $1 profit, there will be 10 losing daytraders cutting their losses at $0.10, or any multiple you care to work with.
Now in reality this is inaccurate, but the point has relevance none the less.......daytraders compete with daytraders in the majority, and more must lose to allow the few to win.
trendie,
patterns, s/r, retractements can be found on different time-frames, because traders with different time-frames act in their particular time-frame.
This is true, but still does not tell the whole truth.
Mr Charts,
This is not some magic method, but is a skills set which can be learnt but then which requires considerable experience to master.
And the greater the number of people who do learn it, and utilise the method, the less effective that it will become. This must be true as the greater numbers will force the average price you pay to enter up, and the average price you pay to exit down.
This is why that when a profitable method is found, people will try to minimise the spread of information, or even provide mis-information.
Having said that, it still relies on the individual skill and tempermant to such a large degree, that many will never master the skills even should they understand the methodology, as it is so subjective.
Cheers d998
