Hi guys,
I was just wondering, if you think, that the rising number of automated trading systems, which are used by banks, institutional traders etc., will have a significant impact one the way we trade?
Trading can become relatively easy, when you get the "feel" for the market (or in other words, the "psychology of the masses"). The human psychology doesn't change much and when you figure it out, deciding when to trade a support line like as a support line or when to trade it like a breakout line, can be a relatively easy decision with a high percentage success.
Now, when the machines will rule the market, what will we do? A few weeks ago the Dow Jones plunged WITHOUT any obvious reasons and nobody knows why. People are guessing that this was because of a heavy selling by black boxes and automated trading machines. Now this was an obvious example of machines ruling the market. What about when the S&R lines, fibonacci's and TL's will stop working? What then? OK, people say, that we need constantly adapt to the market and yada yada yada, but the truth is, you DON'T need to adapt to the market. All I ever adapted was my Stop Losses and Profit Targets, which were based on volatility. The S&R's, TL's and fib's always worked the same. I don't understand what people mean with "adapting to the markets". Human psychology doesn't change itself - when you figure it out, it's for life.
I'm now able to constantly make profits out of forex trading and I didn't have a loosing month since December '09. But, if the machines will come with even bigger impacts, the rules will change. And you can't figure out a machine.
I guess I'll start studying poker as my backup plan (at the moment, I don't even know how to play poker...), because at least there I won't need to play against robots, but humans.
I'd appreciate your thoughts on this subjects.
I was just wondering, if you think, that the rising number of automated trading systems, which are used by banks, institutional traders etc., will have a significant impact one the way we trade?
Trading can become relatively easy, when you get the "feel" for the market (or in other words, the "psychology of the masses"). The human psychology doesn't change much and when you figure it out, deciding when to trade a support line like as a support line or when to trade it like a breakout line, can be a relatively easy decision with a high percentage success.
Now, when the machines will rule the market, what will we do? A few weeks ago the Dow Jones plunged WITHOUT any obvious reasons and nobody knows why. People are guessing that this was because of a heavy selling by black boxes and automated trading machines. Now this was an obvious example of machines ruling the market. What about when the S&R lines, fibonacci's and TL's will stop working? What then? OK, people say, that we need constantly adapt to the market and yada yada yada, but the truth is, you DON'T need to adapt to the market. All I ever adapted was my Stop Losses and Profit Targets, which were based on volatility. The S&R's, TL's and fib's always worked the same. I don't understand what people mean with "adapting to the markets". Human psychology doesn't change itself - when you figure it out, it's for life.
I'm now able to constantly make profits out of forex trading and I didn't have a loosing month since December '09. But, if the machines will come with even bigger impacts, the rules will change. And you can't figure out a machine.
I guess I'll start studying poker as my backup plan (at the moment, I don't even know how to play poker...), because at least there I won't need to play against robots, but humans.
I'd appreciate your thoughts on this subjects.
