Multiple-Market Players | Tecwyn Lim - cheapsportsjerseys.us
Winning is hard to do, and there's a price that you pay for it. And that's how I . Linda Bradford Raschke God. I would look up and say, 'Am I really that stupid?' And I seemed to hear a clear relationships that the mind processes in its search for insight. because very little volume may trade there if it is a turning point. In the s, the price moves were so large that all you had to do was jump on the bandwagon. who has the best daily Sharpe ratio at the end of the year is the best trader. Linda Bradford Raschke: "My favorite exercise for novice traders is pick one market only. The usurer sold time - which belonged only to God. any time frame, from Linda Bradford Raschke's book, Street Smarts. Linda's technique combines the use of classic chart patterns with Note that volume and ADX began dropping as price formed a triangle. The risk was points vs. a point reward on a test of the bottom, a ratio of better than
First of all, we believe that the trend of the ADX, rather than the absolute level, is most important. LeBeau and Lucas also share this view. Second, we have observed that an ADX level of over 50 is usually where a trend nears its climax and becomes vulnerable to an abrupt end, and we usually stand aside in those circumstances.
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Third, we pay attention to flags on diminishing volume. Example 1 In this example, using the Lucent Technologies daily chart, from the peak of on April 7, a consolidation began.
Note that volume and ADX began dropping as price formed a triangle.
On May 12, LU tried to break the downtrend line up to that point, the grey line, on volume. It was met the next day with selling and formed a key reversal day, by going higher intraday, but closing lower than the close on May Breakout players were burned as LU fell back into the triangle and the downtrend line was adjusted to a new position, the blue line.
On June 4 LU tried to break the downtrend line again on volume but the next day, it was met with sellers again. Note the ADX had gone sideways rather than down, as the lack of movement to the downside, combined with the upward movement of the bars began to affect the ADX calculation.
Note volume was contracting on this pullback, forming a nice bull flag, as flags are called when the trend is up.
On June 16, LU broke the downtrend line of the bull flag on volume. Buyers of the bull flag had two choices. Once the buy order was filled, the initial stop loss would be placed just below the low of June By the time it reached the 20EMA5, sellers from both the 5- and minute time frames were lined up at the area, ready to sell on weakness.
This set up the first Grail sale. The second Grail set up was exactly the same as the first one. The third and fourth set ups were more complicated.
Bill Lipshutz's experience with working with John Gutfreund. Interesting trading stories from: Gil Blake's explanation of sector fund inefficiencies. Victor Sperandeo's experience with attempting to train traders. Mark Ritchie's boiler room experience. Jeff Yass' analysis of "Let's make a deal". Charles Faulkner's case study of the guy who who traded for excitement.
Gil Blake's muni bond fund timing strategy. Here are some interesting quotes: The irony is that they are all very difficult to find.
What these patterns make during market consolidations, they lose during trends. Indicators look better with the eyes than they really are. The better a system looks, the more adamant you should be in trying to disprove it. The optimum comes just before the precipice.
Instead, your trading size should lie at the high end of the range in which the graph is still nearly straight. Think about what you're going to do if it gets there.
When behavioral psychologists have compared the relative addictiveness of various reinforcement schedules, they found that intermittent reinforcement - positive and negative dispensed randomly for example, the rat doesn't know whether it will get pleasure or pain when it hits the bar - is the most addictive alternative of all, more addictive than positive reinforcement only.
Intermittent reinforcement describes the experience of the compulsive gambler as well as the futures trader. This illusion is well founded. The market does behave very much like a tutor who is trying to instill poor trading techniques.
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Most people learn this lesson only too well. So in some loose sense of the word there are cycles. The problem is that you can fit sine waves pretty closely even to purely random patterns. If you allow cycle periods to shrink and expand, skip beats, and even invert - as many of these cycle theorists or, perhaps more accurately, cycle cranks do - then you can fit cycles onto any data series that fluctuates.
If there is any skill involved, it will accelerate the process of concentrating all the stakes in a few hands. Something like this happens in the market. There is a persistent overall tendency for equity to flow from the many to the few.
In the long run, the majority loses. The general idea is that what works most of the time is nearly the opposite of what works in the long run. That's why I'm willing to accept systems with somewhat lower theoretical performance if I think they have the property of being different from what I believe most other system traders are using.
They are also able to feel the pain of losing.Linda Bradford Raschke - Trading Habits
If you don't feel the pain of a loss, then you're in the same position as those unfortunate people who have no pain sensors.
If they leave their hand on a hot stove, it will burn off. There is no way to survive in this world without pain. Similarly, in the markets, if the losses don't hurt, your financial survival is tenuous. I know of a few multimillionaires who started trading with inherited wealth. In each case, they lost it all because they didn't feel the pain when they were losing.
In those formative first few years of trading, they felt they could afford to lose. You're much better off going into the market on a shoestring, feeling that you can't afford to lose. I'd rather bet on somebody starting out with a few thousand dollars than on somebody who came in with millions.
In the s, the price moves were so large that all you had to do was jump on the bandwagon. Timing was not that critical.