What are your beliefs? What do you think drives markets?

[Technically Fundamental]

why didn't you come earlier. I've been waiting for someone who knows what they're talking about to come.

Shut me up anyway.

Is that true of "the markets" on the whole or of an individual market?

Anyway... we come right back to supply and demand with money flow

 

[cuotes]

Shadowninja logging into msn, a kid using a sketch, mood, sentiment, offer, demand, liquidity, trends, volumes....

I keep thinking that all those are mere reflections of the real reasons.
And those actual reasons will remain in the shadows, unattainable for us.

 

[barjon]

why didn't you come earlier. I've been waiting for someone who knows what they're talking about to come.

Shut me up anyway.

Is that true of "the markets" on the whole or of an individual market?

Anyway... we come right back to supply and demand with money flow

If you were talking to me, I was here earlier http://www.trade2win.com/boards/gen...do-you-think-drives-markets-2.html#post862594

All markets are basically auction markets, so it all comes down to money in the end. 'Course "economic conditions" have to be seen in the context of the particular market you're interested in.

good trading

jon

 

[Technically Fundamental]

I missed that post barjon. (S/D again lol.) Added to my understanding of the importance of gauging open interest

A know it's a bit off the subject here but looking at the reasoning in that post, are these failed bond auctions likely to soften the blow of the next wave of QE or am I missing something?

 

[Rhody Trader]

A know it's a bit off the subject here but looking at the reasoning in that post, are these failed bond auctions likely to soften the blow of the next wave of QE or am I missing something?

I think you ARE missing something, or maybe seeing something that isn't there. What failed auctions?

 

[Technically Fundamental]

I think you ARE missing something, or maybe seeing something that isn't there. What failed auctions?

The ones in the news back in March and the sketchy June ones.

 

[Rhody Trader]

I believe the UK had the one. Sketchy doesn't count as failed, otherwise the list could be long indeed.

 

[vil-trader]

I think is about liquidity, so money flows. Just ask to the chineses, after the goverment said they are going to start to control where goes the credit, the market is falling 20%.

When you have more money in your pocket, you start to spend in more trivial purchases and services.

p.d. saludos cuotes

 

[Schixm]

If your approach to trading is mainly technical, what exactly do you believe is driving the market? Is it the belief that trends keep recurring, and attempting to get on board? Or maybe that markets are fundamentally mean reverting? Or is it possible simply to construct a set of rules which backtesting proves are profitable, and then go and trade them?

Is it important to trade a belief system?

first, the higher the time frame the more i'll consider fundamentals. lower time frame = technical. simple rule of thumb: if i've got time to consider fundamentals (hourly/daily/weekly), then i'll consider them! Otherwise, i won't.
second, imo the 'best' system cannot be backtested (at least not automatically). because the best system for me is based on price and discretionary (s/r, pivot, MP, vol) trading and it's difficult to backtest all these together. indicators are best for backtesting which is why they are touted as popular - but i think that's all they're really good for. :cheesy:

what drives the market? what drives any market? people and price. without them two, there's no market even with all the stock in the world.

 

[tenbobtrader]

I do believe that you have to at least not trade contrary to your belief system as doing so will probably end up in tears.

Beyond that, all of the above are potential belief systems, and not necessarily mutually exclusive.

Hi RT

good 2nd post on the thread

perhaps fits very well on all the fail threads doing the rounds at the moment

the market is not there to accommodate YOUR belief system

Andy