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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Nazbuster who wrote (616)	6/28/1998 5:08:00 PM
From: CountofMoneyCristo	Respond to of 1729

I would say technical analysis is a critical part of trading. Without it, the chances of enjoying consistent day-trading success are vastly diminished. First of all, choose several indicators that you feel have proven themselves in your particular method, and stand by them. However, do not disregard other factors. News and market psychology are what I mean when I speak of "instinct" or a "sixth sense." If news or a sudden change in market psychology comes into play, you will often find your indicators rapidly becoming completely worthless. This is where one's ability to read the tape, and act upon what that knowledge tells you, becomes of paramount importance. There are several good books on this. I would read as many as you can. In my experience, I have found that too much reliance on any one method in making trading decisions is a surefire route to disaster. The successful trader is able to shift gears at a moment's notice. There is no single strategy that works under all circumstances, though many traders have tried over the years, searching for this elusive answer. There just is none. Experience is the best teacher. I am sorry if this sounds hopelessly general, but I really don't believe in any single way to consistently beat the markets, except to adapt. (Of course, I am speaking of short-term trading here. Long-term investment is another matter entirely.) I learned this the hard way, by throwing away profits, chasing a market that no longer existed. It is one of the hardest lessons a trader must learn. Good luck.