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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: TraderAlan who wrote (7604)	4/3/2000 5:21:00 PM
From: TraderAlan	Read Replies (3) \| Respond to of 18137

This note is really for all the lurkers on this thread. Those not that familiar with the game may get the impression that all that is required for successful trading is good software and a knowledge of the rules behind execution. As that great sage Oz has pointed out many times, nothing could be further from the truth. Execution systems, Level II, ECNs, et all are prosthetic devices for the trader, nothing more, nothing less. They make good traders better but will not make a "newbie" or a marginal trader a successful one. Trading requires accurate understanding and prediction of price discovery. In other words, the trader must be able to consistently predict the next price move and execute a position that takes advantage of the event. Execution systems and black boxes just won't do this. Each trader must find an edge through chart reading, fundamental analysis or market knowledge to succeed. It is very dangerous to believe that hot software will take the place of knowledge of the market swing throughout the day. Level II provides very short term information that helps scalpers capitalize on market inefficiency. Scalping itself is a very demanding form of trading that most newer traders should avoid like the plague. If you cannot find an original point of view to attack your positions, folks like me will consistently take your money. Start with chart reading or whatever advantage you believe justifies your play on this dangerous field. Don't think for a second that any of this is easy nor that you will succeed just because it looks like an exciting way to make a profit. If you're serious, take the time to understand the market swing and how it impacts the trading flow on an intraday basis. Then create your own view that separates you from the hungry crowd. Alan