Supply and demand question

[Rossini]

just means you're not moving with the masses or the big boys. Thats a no no in trading.

Ok a better example would be- There is a fast downward movement, I see that the price is coming to major support and when it reaches this it stalls. I see my opportunity and I can go long with a 5pt risk. At the same time many other traders go long/cut there shorts and the price bounces upwards.



Now, do I care why they went long at that point? It could be for an infinite number of reasons, there was a MA there, fibs, bolly bands, a different TF, they could have had a fat finger and gone long by accident, or they could have been looking at the same potential support point that I was looking at. The point is I don't care why they went long, I only care that they did go long. My reasoning behind it could be irrelevant to other people but to me that is what I am waiting for and that is what I am focussed on.

By that i'm not saying I don't pay attention to what the masses are doing, after all its easier to move with them than against, I just don't care why their doing it.

 

[Technically Fundamental]

One thinng I've learned in trading is once you understand what you're doing, why is irrelevant

 

[new_trader]

One thinng I've learned in trading is once you understand what you're doing, why is irrelevant

Actually, you understand what you're doing when you know why. Otherwise you are guessing.

 

[rathcoole_exile]

more esoteric claptrap from the clueless_trader ?

 

[Technically Fundamental]

Actually, you understand what you're doing when you know why. Otherwise you are guessing.

long - price goes up - profit.... why? could be a million reasons and you just got lucky your analysis sent you in the same direction.