Focus or Money Management?

[tar]

.............and does it matter? For short term trading it is surely enough that you can spot buying interest without worrying about whether it's weak or strong hands doing the buying.

Because weak hand buyers will get shaken easily and they wouldn't be able to defend their positions , they will be a good target for other participants .

 

[barjon]

Because weak hand buyers will get shaken easily and they wouldn't be able to defend their positions , they will be a good target for other participants .

true, but you'll be out and counting your profit by then.

 

[tar]

true, but you'll be out and counting your profit by then.

Sometimes i may be out already , sometimes i may still be in .

 

[darktone]

true, but you'll be out and counting your profit by then.

Presuming it goes their way

 

[SpreadDoctor]

Because weak hand buyers will get shaken easily and they wouldn't be able to defend their positions , they will be a good target for other participants .

exactly. all you have to do is move price up and down but 30 to 40 pips/ticks and most street money is shafted. I dread to think how much street money will be pocketed this afternoon on the data release. I guess if people will leave money lying around they shouldn't be surprised if people come along and pick it up.

 

[robster970]

.............and does it matter? For short term trading it is surely enough that you can spot buying interest without worrying about whether it's weak or strong hands doing the buying.

Of course it matters. You want to identify situations created by strong hands and then trade with them.

 

[SpreadDoctor]

Of course it matters. You want to identify situations created by strong hands and then trade with them.

yep and a knowledge of where the controlling hands are in their cycle of accumulation and profit release is an advantage.

 

[barjon]

Of course it matters. You want to identify situations created by strong hands and then trade with them.

no you don't - you want to catch bursts of momentum and it doesn't matter how that's coming about

 

[robster970]

no you don't - you want to catch bursts of momentum and it doesn't matter how that's coming about

Where do you think bursts of momentum come from? It's no voodoo you know Jon

 

[darktone]

no you don't - you want to catch bursts of momentum and it doesn't matter how that's coming about

Id rather be positioned before and liquidate into the momentum.

 

[postman]

Where do you think bursts of momentum come from? It's no voodoo you know Jon

Random news events generate momentum eg 'Russia / Ukraine' and by their very nature they are unpredictable. They dont all come from one place. The market can be unpredictable on short term timeframes as well as long.

 

[darktone]

Id rather be positioned before and liquidate into the momentum.

Picture, story, thousand words an all o that

 

[darktone]

Random news events generate momentum eg 'Russia / Ukraine' and by their very nature they are unpredictable. They dont all come from one place. The market can be unpredictable on short term timeframes as well as long.

A gift for 'strong hands', nightmare for anyone else eh

 

[counter_violent]

no you don't - you want to catch bursts of momentum and it doesn't matter how that's coming about

Are all bursts of momentum equal or do we need to filter for the ones we want to get involved with ?

 

[robster970]

Random news events generate momentum eg 'Russia / Ukraine' and by their very nature they are unpredictable. They dont all come from one place. The market can be unpredictable on short term timeframes as well as long.

That's true. No question about that. Ultimately though, the schedule of economic news that we all pay attention to is the metronome for playing the game and is used to manage/execute situations independent of the news that long term participants are working towards.

 

[robster970]

Are all bursts of momentum equal or do we need to filter for the ones we want to get involved with ?

I hope you're not suggesting that trade selection might play a part in a successful trading strategy CV.....

 

[barjon]

Where do you think bursts of momentum come from? It's no voodoo you know Jon

I really don't disagree with you all that much - just think the strong hands/weak hands thing is a bit overdone. You can get upward price momentum from buying pressure or selling vacuum.

 

[robster970]

I really don't disagree with you all that much - just think the strong hands/weak hands thing is a bit overdone. You can get upward price momentum from buying pressure or selling vacuum.

How do you think a 'selling' vacuum is created Jon

I can go on forever you know..........

 

[counter_violent]

Think i'll go back to bed...it requires far less effort !

 

[barjon]

How do you think a 'selling' vacuum is created Jon

I can go on forever you know..........

Now, now, Rob . You can pin any price action on the action, or inaction, of these strong hands if you are so minded. Do you think, though, that these big, strong hitters are that interested in a few intraday points here and there, or are they playing a wider game?