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Strategies & Market Trends : Trade What You See, Not What You Think -- Ignore unavailable to you. Want to Upgrade?

To: Threei who wrote (571)	5/9/2001 7:34:59 PM
From: Cormac	Read Replies (1) \| Respond to of 867

Vadym - Sorry if I was a little obtuse - a habit of mine :) depth of confirmation - agreed that it is (for you, some others and I) in part an intuitive process...though as you put it is directly related to experience and permissioned by the foundation/framework/fundamentals/rules and instinct (yes, you can train yourself to react instinctively by repetition, practice, experience and the wholesale commitment to essential principles - determined by self) What I was trying to convey is this: depth of confirmation - the values that other traders require/need/look for to put on a trade...this process (for them) is not a static set of conditions but is directly related to market conditions, blood in the streets and/or euphoria Given the recent river of blood I have found that traders are filled with a continued sense of trepidation (it is waning) and are requiring more depth of confirmation to put on their trades...this brings us to the point you made re: indices and traders movements more close mirroring said indices...again I agree practical application: I am trading the traders(their mindset and reaction to market - corporate and individual)...as these traders need/look for/want more depth of confirmation because of recent market shock it is easier for me to foreshadow their trades as they require more confirmation...I can with a higher degree of safety jump in front as I see/read/anticipate the series of confirmations that they require. Example - if they (in theory) need a series of 4 (in bloody market) events/conditions to confirm their trade it is easy to enter trade at the second confirmation (for me - and you could argue that my actions help confirm their trade)...simply put they are just slower...then again when they (other traders) are in a sense of euphoria they might require very little depth of confirmation...tougher to step in front of (though an argument could be made for more opportunity and hungrier fish in this scenario) Does any of this make sense...this is not anything that I follow religiously but a concept that lives beneath the surface (intuition based upon experience and practice) and covertly affects my reaction to the tape and traders Cormac