Article The Art of Trading?

T2W Bot

Staff member
1,452 54
How many times have you heard someone say, “Trading is an art, not a science.”? I have heard that for years and years and I have to say, it is probably the most ridiculous statement I have heard when it comes to trading and, as we all know, there are some pretty ridiculous statements in the trading world. There is absolutely nothing artistic about trading at all. This is, 100%, a numbers game… How much willing demand and supply there is at each price level is what determines price turns and movement. It’s the buy orders vs. the sell orders and, again, it all comes down to the numbers on both sides of that equation and nothing else. To think Picasso or Van Gough should be brought into this discussion is rather amusing if you think about it. To illustrate the point, let me share a very recent trade we setup for our students.
Live Trading Session – Feb. 12, 2016
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XLT trade using supply and demand strategy
During this...
Continue reading...
 
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aag100

Established member
613 35
it is entirely an art.the numbers result from your interpretation of it.
so you might have called this example right but im sure instances of getting your demand/supply levels wrong will be more numerous.
call it what you may,art,science,supply/demand.it is arrogant to call the opposite opinion ridiculous in this game unless ofcourse you are always right
 

fxbears

Newbie
4 1
How much "willing" demand and supply there is at each price level

THANKS Sam
This opening statement really made me go Ahhahh the word Willing screamed out to me and the second fast rally yet not taking out the highs seems to be the fact that the Value Price is manipulated to enable banks/institutions to offload the remainder of stocks/currencies being held.
Thanks Sam
Regards Rich
 
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Lúidín

Established member
818 61
I do agree with your statement about standard technical analysis, but to use the NQ as an example for Institutional supply and demand, in my opinion, is not that good.

NQ can move 20 points in a flash, as I know from trading it, and you have failed to mention the importance of short term algo trading on Index Futures, which is very common.

I would have much prefered to have seen an example with a blue chip US stock.

WRB > NRB > WRB

LN
 

MainCycleV

Junior member
43 5
When we say trading is an art, we mean that there is no direct or linear relationship between the price trends and any factors, and that you never exactly know what is going on people's mind. Nothing to do with Picasso or Van Gogh.
 

evertontrader

Member
61 9
Sam,

Years ago, I was a disciple of your form of technical analysis. Unfortunately as the results of using your approach were based on the assumption of supply and demand zones which, when followed to the letter, produced very random outcomes. I needed further evidence that these zones existed as I began to risk greater sums on this assumption so I spent a long time looking into the theory behind your ideas.

My opinion now is that these zones are merely oscillation points of the price as the thousands of participants in the markets express their very subjective views by buying or selling... and have nothing to do with the markets "memory" of supply and demand points.

When you factor in things like currency overlay, delta hedging and the wider hedging of all assets across markets... huge buy and sell orders come in to all markets with no directional bias what so ever, all the time. This means there was no preconceived point of value determined (the price does not matter at all), the orders instead offset a corresponding order or position, which completely undermines the idea of "wholesale" prices.

Regards
 

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