The secret of the stock market
Hello Iddd,
I think you speak to the soul of many thousands of traders here at FF. Basically, I can understand your reasoning because the market seems anything but logical. Since I have some time today, I would like to go into your statements in detail. Basically, I accept your opinion 100%, but I would like to take the opportunity to present my point of view. It's not about being right, because the stock market only works because there are different opinions.
Of course, many millions of traders are looking for the optimal setup every day and spend a lot of time on the Internet. But we must not assume that a successful trader will reveal all his secrets. For example, I myself have passed on a very large market advantage free of charge with the Bionic candle. But that's just a small part of my overall setup. For what reason should I publish my complete, personal market advantage here? Even if someone offers me money, I wouldn't be interested because I regularly earn money with my setup, which was created very laboriously. Furthermore, a trading philosophy is something that cannot easily be transferred from one person to another. It is something that one has to acquire oneself through the investment of time and effort. It's perfectly normal to feel like you haven't learned anything. Because only with a very complex money management representation can you see that you have actually improved, although you are mainly making losses.
The fact that the market is dominated by the big big players has nothing to do with a recent trend, it is simply due to the fact that the big players own the most capital. Incidentally, I do not believe that the markets are primarily manipulated, but that different opinions result in pricing that does not appear logical at first glance. If out of 100 traders only 5 traders are profitable and at the same time 50 traders claim to be able to make a living from it, it is clear that 90% are lying. Profits also have something to do with the right setup, but primarily the psyche is the decisive factor. When I started trading over twelve years ago, I was already financially independent and didn't have to trade for a living. I think looking back, that was an important reason why I was able to reached my break even point faster. As the saying goes: You should only trade with money that you could easily do without. If you want or have to make a living from trading, the pressure is often so great that many traders fail.
I want to come back to the big players. The fact is that there are no clear patterns in the market within candles, indicators or even in the price. This is due to the law of causality, which is governed by cause and effect. A price only changes because the market orders run into the limit orders. These different order types are brought into the market by algorithms in order to process different strategies. I have described some of these strategies of the big players in this video:
Algorithms are nothing more than consecutive programs that are repeatedly issued in certain sequences and are also very complicated to program. It is therefore logical that these algorithms must show the same patterns over and over again. And that's why I've specialized in exactly that. However, this cannot be done with conventional Forex data, so I mainly work with stock market data. The market doesn't know if you're long or short, and the market doesn't care. You're the only one emotionally connected to your position. The market simply responds to supply and demand, and once you're committed to one direction, there's always someone else who's just as adamant that the market is going the other way. In order to be successful in a market, it is not crucial to be better than the big players, it is enough to be better than the average. Even if I only work mediocre with the algorithms, I have a clear market advantage because nobody deals with the algorithms. Trading is fundamentally a business of probabilities, and I lose money every day. But the trick is to accept these losses and to find a setup where the expected value is positive. No profession requires more hard work, intelligence, patience and mental discipline than successful speculation.
I find it impressive that you have persevered in trading for over ten years. Since you haven't found the right setup yet, you can't infer the fact that trading doesn't work. For example, I myself could never play football properly and therefore found the game stupid. However, there are soccer players who make a lot of money from it and these successful soccer players love the game. But compared to all football players, these are of course only a few. In trading it is basically the same.
If you want to do better than the crowd, you have to do things differently than the crowd. Sir John Templeton.
Greetings Michael
Disliked{quote} Hehe, thank you. Well, I am now involved into trading for well over a decade and still have the feeling I haven't learn anything, having spend an incredible amount of time scrolling up and down the internet. {quote}Ignored
Hello Iddd,
I think you speak to the soul of many thousands of traders here at FF. Basically, I can understand your reasoning because the market seems anything but logical. Since I have some time today, I would like to go into your statements in detail. Basically, I accept your opinion 100%, but I would like to take the opportunity to present my point of view. It's not about being right, because the stock market only works because there are different opinions.
Of course, many millions of traders are looking for the optimal setup every day and spend a lot of time on the Internet. But we must not assume that a successful trader will reveal all his secrets. For example, I myself have passed on a very large market advantage free of charge with the Bionic candle. But that's just a small part of my overall setup. For what reason should I publish my complete, personal market advantage here? Even if someone offers me money, I wouldn't be interested because I regularly earn money with my setup, which was created very laboriously. Furthermore, a trading philosophy is something that cannot easily be transferred from one person to another. It is something that one has to acquire oneself through the investment of time and effort. It's perfectly normal to feel like you haven't learned anything. Because only with a very complex money management representation can you see that you have actually improved, although you are mainly making losses.
The fact that the market is dominated by the big big players has nothing to do with a recent trend, it is simply due to the fact that the big players own the most capital. Incidentally, I do not believe that the markets are primarily manipulated, but that different opinions result in pricing that does not appear logical at first glance. If out of 100 traders only 5 traders are profitable and at the same time 50 traders claim to be able to make a living from it, it is clear that 90% are lying. Profits also have something to do with the right setup, but primarily the psyche is the decisive factor. When I started trading over twelve years ago, I was already financially independent and didn't have to trade for a living. I think looking back, that was an important reason why I was able to reached my break even point faster. As the saying goes: You should only trade with money that you could easily do without. If you want or have to make a living from trading, the pressure is often so great that many traders fail.
I want to come back to the big players. The fact is that there are no clear patterns in the market within candles, indicators or even in the price. This is due to the law of causality, which is governed by cause and effect. A price only changes because the market orders run into the limit orders. These different order types are brought into the market by algorithms in order to process different strategies. I have described some of these strategies of the big players in this video:
Inserted Video
Algorithms are nothing more than consecutive programs that are repeatedly issued in certain sequences and are also very complicated to program. It is therefore logical that these algorithms must show the same patterns over and over again. And that's why I've specialized in exactly that. However, this cannot be done with conventional Forex data, so I mainly work with stock market data. The market doesn't know if you're long or short, and the market doesn't care. You're the only one emotionally connected to your position. The market simply responds to supply and demand, and once you're committed to one direction, there's always someone else who's just as adamant that the market is going the other way. In order to be successful in a market, it is not crucial to be better than the big players, it is enough to be better than the average. Even if I only work mediocre with the algorithms, I have a clear market advantage because nobody deals with the algorithms. Trading is fundamentally a business of probabilities, and I lose money every day. But the trick is to accept these losses and to find a setup where the expected value is positive. No profession requires more hard work, intelligence, patience and mental discipline than successful speculation.
I find it impressive that you have persevered in trading for over ten years. Since you haven't found the right setup yet, you can't infer the fact that trading doesn't work. For example, I myself could never play football properly and therefore found the game stupid. However, there are soccer players who make a lot of money from it and these successful soccer players love the game. But compared to all football players, these are of course only a few. In trading it is basically the same.
If you want to do better than the crowd, you have to do things differently than the crowd. Sir John Templeton.
Greetings Michael
Forget:That does not work, amateurs build the ark, pros the Titanic!
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