I guess the biggest question if you want to trade for a living is knowing what to do in order to reach your goals....do I use the MACD or the RSI or this and that. I saw an info commercial on TV that had this system that looked good, should I buy that? I think the first question is what market should I trade is a place to start....because stocks do not trade like corn does and the forex doesn't trade like the bonds do and so on. They all their own little thing just like your kids...but once you decide on which market you want to trade then you have the second major question to contend with....and this is.....
Designing a style or system has one problem and if you look at this 5 minute chart of last week you see what I mean. "A" was a trend day, what a wonderful world it would be if everyday was a trend day...now won't it. "B" is a reversal day, make it in the morning and give it back after lunch. "C" is a BSski day where the trend day people get killed and the reversal people are banging their heads on the desk.
So how many "A" days are there in a 100 trading days of the market you want to trade?
How many "B" days and "C" days....because I believe you have to figure out what kind of style or system you will need to get the best results.....
Do you know this already.......I would say that 99.3% of people trying to trade don't even have a clue about this idea.....think about it...do you know?????
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2 comments:
yea, days like "A" are just about 15% of a year. Depending on which market but its something about it in avarage. Can I get a candy now?
It doesn't matter what the end-of-day picture looks like (A, B or C). If you can read the market internals, you'll know what to do (and not do) as each (kind of) day progresses.
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