MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 670.92

+0.1%

Nov 7 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: HairBall who wrote (80711)	7/22/2001 1:21:29 PM
From: exeric2	Read Replies (2) of 99985

I tend to be a contrarian not only about market sentiment but also on some rules of TA, and this came from my own hard experiences. Years ago I was trading in copper futures. I had been reading all the books about chart patterns and thought I knew a thing or two. Lo and behold over days and weeks a picture perfect pattern of a head and shoulders began to appear on the copper charts. Knowing I was onto a sure thing if there ever was one I plunged. Needless to say it was a total fake-out and I ended up losing a bundle. That experience was a teacher if ever there was one. Now I take everything with a grain of salt. Actually I am a fast believer in one form of TA: Neural Nets. Don't get excited just yet. What I really mean is use your own brain as a neural net. Learn everything you possibly can about technical analysis, about supply and demand, about price valuation, and about sentiment indicators and stay involved in watching the market over years of time. Sooner or later if you have this commitment your brain will begin to recognize things that you sometimes can't quite put your finger on. You'll just know about which direction the path of least resistance is for the market. It won't be 100% accurate and it won't always be working but there will be periods of time when everything just flows. In those times, which might not last long, you can make a lot of money. This thing I call a neural net will also do something equally valuable: you'll be better able to differentiate between those periods when you have a clue and when you don't. You'll become more aware of when you are trading because you crave action rather than being in tune with the market, and better able to resist the temptation. God, I see a lot of people on SI who just crave the action and then just make up a market belief to justify their actions. If your own neural net is highly tuned you KNOW when you are in tune with the market and when you aren't. Nuff said.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next