Do professional traders use technical analysis the same way we use it ?
I mean, these guys at Wall street, do they put some fib retracement on their chart ? do their look at the stochastic ? Do they count the eliott waves ?
Is that what they learn in havard and all ?
I saw a lot of videos and sometimes you can see some charts at the screen, and i have never seen more than a little graph, taking only 1 screen out of 6.
Seems like only retails traders use theses fibonnacci, eliott waves, stochastic, MACD, RSI, tell me if i’m wrong are the professional traders trading the saw way that we do ?
If yes, why do they need some diplomas and stuff ?
I don’t know how big boys they trade, period! so your questions kinda little vague. For me, absolutely, I trade with TA only! Fib, pivot points, candle stick pattern, chart pattern.
Understand and interpretion the psychology of the market! it’s really crucial for you to become a profitable trader.
Recognize the trend! Trend = sentiment+ momentum. Weekly charts are really helpful
Trade with blank charts! I trade with blank charts, period! RSI,MACD, MA,etc, you name it, are lagging. they just tell you the past what happened. Do they tell you the future? No, if they do, then, all the trader will become billionaire right?
Study hard, paper trade, demo, and build your own trading system, you will be there. By the way, I’m extending my 23rd winning week today (2.4% return for this week).
They do not teach TA in school thats for sure. If it works they use it… I imagine it also works in reverse for them; they use indicators to mess you up.
I can imagine a trader with a lot of buying power laughing ‘RSI is oversold lol’ slams finger on the sell.
A 2.4% return and a 23 weeks winning streak is quite good, and yes, using too many indicators is going to mess up the screen like bird poo on the windscreen.
A business school, whether it is Harvard or State U., is going to teach you general business stuff, as in how to produce x number of widgets for the highest profit margins. In other words, how to manage a business for success. What we do as traders is somewhat outside that scope. Thus, one does not go to college to learn how to be a successful trader anymore than one would go there to learn how to be a successful Formula One driver. Our profession is outside the scope of the traditional four year institution.
I would advise you to read any of the “Market Wizards” books by Jack Schwager. In them you will see that many traders employ technical analysis as part of there overall methodology. To give you a specific example, Paul Tudor Jones states he uses Elliot Wave Analysis as part of his trader’s toolbox. Furthermore, if you google “Turtle Rules” you will see the system that Richard Dennis/William Echkhardt taught to the original Turtles was entirely based on technical analysis.
I think it is important to remember that what we do is not a 9-to-5 job, and therefore it is not always useful to employ metrics from other professions to quantify ours.
Market Makers, absolutely do not use anything but TA, they read the charts and understand what’s going on, and that’s on an hourly basis, trading fundamental analysis is possible but in reality it’s not the kind of returns any trader worth his salt would consider entertaining.
2.4% over 23 weeks, I’d rather stick it my money in a bank account and forget about it!
No offence but I have to agree there. Even I (ME) am worth more than that!!!
That aside: I don’t know what the so-called ‘professionals’ use. But I’ll tell you this much: 99% of the ‘amateurs’ use indicators not knowing how to use them correctly. Somebody mentioned RSI and it’s a CLASSIC example. ADX is another. BOTH ‘top of the range’ indicators that have stood the test of time. IF you know what they’re telling you and how to use them correctly that is. But for the most part: most ‘instructions’ for them found on the Internet are nothing more than some regurgitated ‘sht’ that gets passed down from one ‘amateur’ to the next. And if you think I’m talking nonsense: read Wilder’s book ‘New Concepts In Technical Trading Systems’ (in case you didn’t’ know: J. Welles Wilder Jnr. developed both). You’d be AMAZED at how DIFFERENTLY one is SUPPOSED to interpret those two indicators as they were intended to be interpreted as opposed to the regurgitated 'sht’ that does the rounds on the Internet. RSI on its OWN has made me a fair ‘whack’ of money on the occasions when I’ve used it (in other words when I get a REAL RSI trade setup).
And then there’s this thing of define a ‘professional’ trader. I consider myself a ‘professional’ trader because this is (mostly) what I do for a living. Larry Williams is a ‘professional’ trader for the same reason. The list goes on. And yes: these types of ‘professional’ traders DO use TA and (some) indicators (even good ‘ol ‘Candle Stick King’ Steve Nison has chapters on RSI and ADX in his books which has always given me a good ‘cackle’). Don’t confuse us (yourself) with the likes of floor traders and the likes of the Goldman Sachs’ of this world. Floor traders are THE ‘professionals’ (and I’m talking about those that trade for their own accounts not some ‘runner’ for a broker) and no they don’t have charts in front of them with all manner of indicators etc. They are as ‘close to the ground’ as it come in this business. They DO have a ‘feel’ for the markets or should I say that the good ones can ‘read’ the markets. The others (that cant) fail the same way as most retail traders (us). The Goldman Sachs’ of this world for the most part have multi-million dollar high frequency trading algorithms etc. to ‘trade’ with. So never ever fool yourself: traders like us (whether you deem yourself to be a ‘professional’ by my definition or an ‘amateur’) at BEST case are ALWAYS one step behind the floor traders and the Goldman Sachs’ of this world.
there are several ways of trading forex. there are ones who trade with techniacal there are ones trading according to news and there are fundamental traders. You need to find your way but you need to learn all in order to find the best fitting you
See: now THAT I like (for what it’s worth). REALISTIC gains and achievement (even although you got our initial wording wrong or WE misunderstood you). You’ll be around, probably wealthy, in the coming years if you just ‘stay on course’.
Well done. I’m sure you’ve worked it out. Average that over a year (even without compounding)??? By my calculations that’s 9.6% per month. That’s 115.2% per annum. Any problems??? Anyone??? But just go and take a look a the number of threads where this wouldn’t be considered good enough!!! MAN: many people have lost touch with reality it would seem.
Yes, I am using weekly charts as the trend. Also, I determine the R/S of the day. 5-min is my entry. Chart pattern is my ultimate weapons and I love it! hope this help.
Got it the first time around, seeing how making 2.4% over 23 weeks makes even a bank interest rate seem better. And on the topic of profits, as Dale mentioned, some have lost touch with reality or what goes for it.
I don’t really see how making 2.4% in 23 weeks (never mind the original misunderstanding) is worse than making 2% to 2.5% in 52 weeks (which is what the average European bank will cough up over a year).
I’ve been meaning to reply to this thread for days, I originally replied that 2.4% was basically a waste of time in half a year, but it then became clear that it was a weekly profit! 2.4% every week on average, that is worth posting about, good on you.
Morning and afternoons great traders,
Best of luck to your trading with great success! I will update my balance once every Saturday 2 p.m. Eastern time (GMT +5), stay in touch.
Come on, you got to be kidding about the Euro bank interest rate - 2.5% for 52 weeks…damn, that’s way too low, I stand corrected. But yes, I believe the poster was posting about a 2.4% return weekly and which is quite good. I do have one additional query, care to post a breakup of your strategy?
