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-   -   What are your beliefs? What do you think drives markets? (http://www.trade2win.com/boards/general-trading-chat/70718-what-your-beliefs-what-do-you-think-drives-markets.html)

meanreversion Aug 12, 2009 7:25am

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

Rhody Trader Aug 12, 2009 7:40am

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.

normbeef Aug 12, 2009 7:49am

I dont care why the market moves, as long as it moves...

sometimes it seems obvious, sometimes not... makes no difference... !!!

you would have need a wild imagination to concieve a non repeatable pattern in any market.. given the parameters to work with (i.e price moves up or down and major news generally comes at the same time each week / month etc.) everything would create a repeatable pattern in the end..

Perhaps sit back and try to imagine a market without a non repeatable pattern ? let me know how you get on... :)

0007 Aug 12, 2009 7:51am

Some instruments are cyclical some of the time but none are all the time. This may manifest as trends which can be exploited. That's my experience and therefore belief, because it is evidence-based.

Technically Fundamental Aug 12, 2009 8:09am

My opinion on why the market moves?
Get a piece of paper with two columns and write supply in one and demand in the other. Then list everything could drive the each one in its respective column and bang! market solved. Start now. You can write it into your will and testament that your incomplete list should be posted on t2w after your death.

dick_dastardly Aug 12, 2009 8:48am

Does price gravitate towards stops ?

dd

Masquerade Aug 12, 2009 8:57am

People drive the market.

Rhody Trader Aug 12, 2009 11:24am

Quote:

Originally Posted by dick_dastardly (Post 862350)
Does price gravitate towards stops ?

Price gravitates to the price levels where the market makers think the most volume is going to flow through.


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