Mind the Gap

[Splitlink]

There is a, fairly recent, thread, called "Other Side of the Screen", last post 0203 am, today, that I thought was good . LLSS made a case from the professional's perspective. Some may not have noticed it.

 

[PieterSteidelmayer]

I hope that that last will show my lack of ego

Don't worry splitlink, I have more than enough of that for both of us.

There's no special gift in trading without charts nor do those who so deserve your admiration any more than those who use charts. The skill is in being profitable whichever techniques or tools you choose to use.

Your assessment of the profile of traders trading the small timeframes is accurate, but that's not to say the lower timeframes are purely the domain of the under-capitalized and inexperienced. It will just tend to encourage the under-capitalized and inexperienced to trade more frequently for a much lower reward/risk.

Trading in any timeframe requires three things: A high degree of confidence in your intended plan of action; a reward many multiples of your risk and; a preference to scratch a trade which does not immediately perform and see it go on to make a move that would have earned profits rather than take a loss.

 

[PieterSteidelmayer]

There is a, fairly recent, thread, called "Other Side of the Screen", last post 0203 am, today, that I thought was good . LLSS made a case from the professional's perspective. Some may not have noticed it.

Yes I read that this morning. LLSS is I suspect from the spreadbet side of the industry where he/she implies his company make money from taking on their clients bets directly - bit like a bookie laying off only excess risk. Nothing wrong with that of course; it's a great business model. It does depend on punters being willing to bet on markets at least one level removed from reality.

 

[tar]

Another subject seems to be the merits of using a chart, or not. I make no apologies for stating that I am unable to visualise which direction to take, or whether the price is overbought/sold, without one. Those who use orderflow and other tools, successfully, without the use of charts, have my admiration and I will. always read their posts in the hope that they will knock something into my thick head.

Ofcourse all this talk about trading index futures is ignoring the fact that the index is the weighted average of 500 stocks - S&P500 - ... etc , so analyzing the index futures contract separately during RTH and looking at it from just one angle as if its a separate contract doesn't make sense ....

"You don’t trade or invest in markets; you trade or invest according to your beliefs about the markets." Van Tharp.