Mr. Charts
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J.O.
I second Richard's comments about your thread as well as his comments about its hijacker who clearly has an agenda of his own. Sadly, such folk have no interest in intelligent debate and no respect for the views of others.
Richard,
"I really feel someone should only write what they know quite a bit about and not pontificate on areas in which they know very little. Otherwise beginners gain nothing from BBs but expanding their range of ignorance".
To be blunt, the vast majority of starters and intermediates, (can't think of better words), think that if someone sounds as if they know what they are talking about on BBs, they must know more than them. There is a tendency to accept what people say as being correct as they try to glean nuggets here and there. Usually the nuggets are fool's gold. IMHO, that is one of the reasons most people try and fail.With the above quote in the forefront of my mind, the following comment is offered as a suggestion only - and one which you may care to comment on.
My understanding of the way you and Naz trade is roughly as follows:
Although there are similarities Alan and I have many differences in our approach and how we trade.1. You each have chart patterns that you favour which are often (but not always) linked to a story about the stock in question - e.g. broker upgrade, earnings report or new product/service etc.
Also core trading stocks and other methods
2. Your experience tells you that a price movement of some sort is likely to occur - either up or down and sometimes in both directions - from which you can extract a profit.
Yes
3. The force (read momentum) and direction of the impending price movement is dictated by the extent of buying pressure, evidenced by the number of buyers at the ask or, conversely, selling pressure, evidenced by the number of sellers at the bid.
No not merely the numbers, that is not the major factor - maybe 20%
4. As the pressure builds up, orders get filled, momentum cranks up and the price starts to move. At this point, your skill and that of Alan is to ensure two key things:
Momentum often starts suddenly BEFORE it appears on a chart. I realise that sounds odd, but sometimes there are signs of the impending momo BEFORE it happensA. That your order is at the head of the queue and is filled early on knowing that there are a lot of other traders who think as you do and want a slice of the same action. (Safety in numbers).
Mmmmm........not as such, sometimes you can enter before the move is obvious because you've been forewarned by movement WITHOUT price change, so you needn't be fastest at all.B. That as momentum starts to fade towards the end of the move, there are still a few late comers at the back of the queue to sell to (assuming a long position, obviously).
Oh yes ;-)))
The bug bear for us mortals is that you and Alan make this process look and sound so simple which, for many of us and me in particular, it ain't.
There I don't agree. I use charts and other means to find potential movers then look at level2 T&S buy/sell pressures at certain levels. The latter often act as confirmation/denial. Sometimes they tell you nothing. This is a huge help with break outs as very frequently what I see will tell me if the break out will or will not succeed. Not always and not absolutely, but with a high degree of probability when the trigger occurs. It's like being able to tell if a volcano
is going to erupt or not. Or to put it another way, you are a better driver if you can anticipate the road ahead well. I really honestly don't think this business is any more difficult than driving through Central London or on a motorway. It looks amazing if you are not familiar with the rules of the road and how people behave and have no experience.
Hope that helps Tim
RichardTim.
I second Richard's comments about your thread as well as his comments about its hijacker who clearly has an agenda of his own. Sadly, such folk have no interest in intelligent debate and no respect for the views of others.
Richard,
"I really feel someone should only write what they know quite a bit about and not pontificate on areas in which they know very little. Otherwise beginners gain nothing from BBs but expanding their range of ignorance".
To be blunt, the vast majority of starters and intermediates, (can't think of better words), think that if someone sounds as if they know what they are talking about on BBs, they must know more than them. There is a tendency to accept what people say as being correct as they try to glean nuggets here and there. Usually the nuggets are fool's gold. IMHO, that is one of the reasons most people try and fail.With the above quote in the forefront of my mind, the following comment is offered as a suggestion only - and one which you may care to comment on.
My understanding of the way you and Naz trade is roughly as follows:
Although there are similarities Alan and I have many differences in our approach and how we trade.1. You each have chart patterns that you favour which are often (but not always) linked to a story about the stock in question - e.g. broker upgrade, earnings report or new product/service etc.
Also core trading stocks and other methods
2. Your experience tells you that a price movement of some sort is likely to occur - either up or down and sometimes in both directions - from which you can extract a profit.
Yes
3. The force (read momentum) and direction of the impending price movement is dictated by the extent of buying pressure, evidenced by the number of buyers at the ask or, conversely, selling pressure, evidenced by the number of sellers at the bid.
No not merely the numbers, that is not the major factor - maybe 20%
4. As the pressure builds up, orders get filled, momentum cranks up and the price starts to move. At this point, your skill and that of Alan is to ensure two key things:
Momentum often starts suddenly BEFORE it appears on a chart. I realise that sounds odd, but sometimes there are signs of the impending momo BEFORE it happensA. That your order is at the head of the queue and is filled early on knowing that there are a lot of other traders who think as you do and want a slice of the same action. (Safety in numbers).
Mmmmm........not as such, sometimes you can enter before the move is obvious because you've been forewarned by movement WITHOUT price change, so you needn't be fastest at all.B. That as momentum starts to fade towards the end of the move, there are still a few late comers at the back of the queue to sell to (assuming a long position, obviously).
Oh yes ;-)))
The bug bear for us mortals is that you and Alan make this process look and sound so simple which, for many of us and me in particular, it ain't.
There I don't agree. I use charts and other means to find potential movers then look at level2 T&S buy/sell pressures at certain levels. The latter often act as confirmation/denial. Sometimes they tell you nothing. This is a huge help with break outs as very frequently what I see will tell me if the break out will or will not succeed. Not always and not absolutely, but with a high degree of probability when the trigger occurs. It's like being able to tell if a volcano
is going to erupt or not. Or to put it another way, you are a better driver if you can anticipate the road ahead well. I really honestly don't think this business is any more difficult than driving through Central London or on a motorway. It looks amazing if you are not familiar with the rules of the road and how people behave and have no experience.
Hope that helps Tim
RichardTim.
