What are your beliefs? What do you think drives markets?

This is a discussion on What are your beliefs? What do you think drives markets? within the General Trading Chat forums, part of the Reception category; Originally Posted by Rhody Trader I think you ARE missing something, or maybe seeing something that isn't there. What failed ...

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Old Aug 13, 2009, 3:27pm   #46
Joined May 2008
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Originally Posted by Rhody Trader View Post
I think you ARE missing something, or maybe seeing something that isn't there. What failed auctions?
The ones in the news back in March and the sketchy June ones.
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Old Aug 13, 2009, 6:31pm   #47
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I believe the UK had the one. Sketchy doesn't count as failed, otherwise the list could be long indeed.
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Old Aug 18, 2009, 1:34am   #48
 
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I think is about liquidity, so money flows. Just ask to the chineses, after the goverment said they are going to start to control where goes the credit, the market is falling 20%.

When you have more money in your pocket, you start to spend in more trivial purchases and services.

p.d. saludos cuotes
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Old Aug 18, 2009, 2:05am   #49
Joined Aug 2009
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Originally Posted by meanreversion View Post
If your approach to trading is mainly technical, what exactly do you believe is driving the market? Is it the belief that trends keep recurring, and attempting to get on board? Or maybe that markets are fundamentally mean reverting? Or is it possible simply to construct a set of rules which backtesting proves are profitable, and then go and trade them?

Is it important to trade a belief system?
first, the higher the time frame the more i'll consider fundamentals. lower time frame = technical. simple rule of thumb: if i've got time to consider fundamentals (hourly/daily/weekly), then i'll consider them! Otherwise, i won't.
second, imo the 'best' system cannot be backtested (at least not automatically). because the best system for me is based on price and discretionary (s/r, pivot, MP, vol) trading and it's difficult to backtest all these together. indicators are best for backtesting which is why they are touted as popular - but i think that's all they're really good for.

what drives the market? what drives any market? people and price. without them two, there's no market even with all the stock in the world.

Last edited by Schixm; Aug 18, 2009 at 8:48am.
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Thanks! The following members like this post: tenbobtrader
Old Aug 18, 2009, 9:30am   #50
Joined Jun 2009
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Originally Posted by Rhody Trader View Post
I do believe that you have to at least not trade contrary to your belief system as doing so will probably end up in tears.

Beyond that, all of the above are potential belief systems, and not necessarily mutually exclusive.
Hi RT

good 2nd post on the thread

perhaps fits very well on all the fail threads doing the rounds at the moment

the market is not there to accommodate YOUR belief system

Andy
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