Silicon Investor (SI) -- The First Internet Community

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 : Daytrading Psychology -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (87)	12/4/2000 12:41:02 AM
From: Dan Duchardt	Read Replies (2) \| Respond to of 104

russett, Making money in the market is always more work than most of you think. Who said anything about trading not being work, and why am I being designated as one of the "YOU" who thinks one does not have to work to be a good trader? You know nothing about me and how hard I have been working at learning to trade. The fact remains there are a number of very good traders who know next to nothing about the companies behind the stocks they trade. There are many styles of trading, only some of which depend on the detailed knowledge you claim to be necessary to succeed. Most of what you have listed is far more important to longer term position trading or investing than to daytrading. The market is pure psychology in the short term, and nothing else. If this is true, and I accept that for the most part it is, then you have to have some way to read what is in the minds of other market participants. You can ask all the analysts (people who influence her), trusted friends, market gurus etc. you want, but ultimately all the psychology leads to behavior that creates supply and demand for stocks and the market as a whole. I don't discount the value of knowing the quirks an individual stock may exhibit in the broader context of market action, but unless you are an insider there are always going to be things you don't know that will affect the short term landscape. I still contend that too much "knowledge" can be a dangerous thing that will cloud judgement. The trader who acknowledges ignorance of the intimacies you suggest we all need to know will not be influenced by them, and may very well have a clearer view of what is staring them in the face. I won't speak for our friend Threei, but the very title of the thread he started recently speaks volumes. "Trade what you see, not what you think" has served him well. All that knowledge you suggest as mandatory is enough to make a "thinker" out of almost anybody. Dan

To: russet who wrote (87)	12/4/2000 7:15:28 AM
From: Threei	Respond to of 104

russett, I, too, support Dans and Brandon's point of view. To me your list of musts and statement "The market is pure psychology in the short term, and nothing else" somewhat contradict to each other. Psychology of players in short term could be read and utilized from the chart (tape), and as long as one controls his risk and follows principles of tape (chart) reading, he/she can be successful in trading. I do agree with Dan in that deep knowledge of details surrounding company could lead to forming of the opinion. Eventually it leads to creating of the map in one's mind. One becomes likely to follow one's map rather than territory, and the territory is stock movement - the only thing that really matters. It is a hard work, just subject of this work is different from what that list contains. Vadym

To: russet who wrote (87)	12/4/2000 9:49:19 AM
From: Dave O.	Read Replies (1) \| Respond to of 104

< Price and volume are but a fraction of what one must know. You must know who invests in your stock, what the market in your stock is, what industry it is in, and how the economy affects that industry. > I disagree with the the latter statements above. Price & volume tell me what I need to know as a trader. I really don't care "who" invests in the stock since I am NOT an investor but a trader. And I also don't care what sector it's in or what the economy is doing. Market sentiment will tell me whether to go long or short. Dave