Wyckoff trading method, page-611

Hey Jako......brilliant thread

Although I'm impartial to Wyckoff, I can understand where it's coming from. I watched those you-tubes a couple of years back and I have just re-watched them. One thing I have now is greater clarity of TA and as such I just posted this in the XSO thread but thought some might like it here.

One thing I must say, and it's very important, and it's the reason of differing views, it is this.......You don't know what you don't know.

I was able to look back on those youtube clips with a completely different view than before and with a completly different understanding. Your time spent trading changes everything you come to believe in as far as Technical analysis goes. You won't understand that till you are experienced.


Here is the post....................


In the real world, consistantly daytrading on specs and low/midcap companies doesn't work. The small timeframes and relative illiquidity makes trading those sectors dangerous. It only works on hotcopper for some reason.


I've been extremely busy of late studying different styles of TA. Make no mistake FA is very important...

I was intrigued when one of our good buddies said that his TA was a mish-mash of styles, and it got me thinking about trading and technical analysis and I have come to this conclusion.


The type of TA you do....whether it be staight out trend trading, VSA/Wyckoff, chart based indicators, Fib ratios, etc, etc, etc, will depend on these things....

1...The amount you commit to a trade.
2...Your timeframe for that trade
3...Your risk tolerance
4...What you want from the market (your Reward)
5...you're available time
6....the stock you trade, it's liquidity and value.
7....the development of the trade. (my TA methods change as the trade develops.)
8....your level of experiance

So, in the real world of live trading, when you use TA, there is no one size that fits all. And there is no one style that matches the development of the trade.

For me, the above is a very important revelation and has taken a while to come to it.


And finally there is one more thing...and that is what do you expect from trading/investing. I think most good trading books are written for the purpose of returning superior returns than just investing. Considering a return over time of 10-12% is acheivable through investing, than by using TA learned from many written sources, if you can achieve a return above that, then the book or newsletter has done it's job.

But , what most books, I have found, don't tell you, is what is possible, and how to achieve that. That's where your own journey of discovery lays and, as it is a very personnal matter , it's one of the core reasons of divergent views on many of these threads.

Does that make sense?