What is the most important in the trading? Timing the market? I don't think we can. Maybe we can get it right sometimes. That is it. Stock Technical Analysis or Fundamental analysis? Maybe they are important. But as I always said: "Nothing is more important than the risk control." We don't have unlimited money. We need to take care of what we can control.
Good luck and go HAWKS!
"What is the most important in the trading? Timing the market? I don't think we can."
ReplyDeleteYou may want to rethink or rephrase what you said. =) If timing the market isn't possible, then it follows that one shouldn't "trade" the market, but rather remain in at all times.
As a trader, especially a successful one, what you said is like the Wright Brothers saying it's not really possible to fly.
No, don't try to time the market. Most people try to do that and they fail.
DeleteMaybe you will agree with me sometime in the future.
I'm managing much bigger account than what I originally posted since I think I'm ready for it. When I realize how critical the risk control is. I don't really care how the market moves.
Don't time the market? Okay, who are you and what have you done to Baby Sun??!?? =)
DeleteThe last several weeks you moved from swing trading to day trading, and now all of a sudden you believe trading can't be done?
The whole point of trading in any time frame is knowing when to buy and sell, which is essentially market timing. Of course many people fail at trying to time the market- it's what makes trading so difficult. The success rate of day trading is 15% or less, so only a small percentage succeed- but everyone knows those stats.
The market can be timed because it isn't purely random. It reacts to support and resistance levels and forms trends.
Are you saying you will no longer trade the market and just stay invested?
"The last several weeks you moved from swing trading to day trading, and now all of a sudden you believe trading can't be done?"
DeleteThat is not true at all. I never switched and my trading style is the same and I applied it over and over for the last several years. I never said that trading can't be done. Yes, The strategy that doesn't time the market happens work for me for the past several years. The difference is that I'm less emotional towards the market turbulence.
Sometimes I show the day trading result here and it is purely just for fun. I've used 1% of my account to trade. You tell me what is important to me. :-).
You are missing my point. My point is that only risk control matters if you want to stay in this kind of business. It is not important what our approaches are, what methods we are using, either day-trading or swing trading.
I agree that risk control is important for longevity in this market, but I think that you're missing my point that any method of trading - in any time frame- employs some style of market timing.
DeleteIf you are not leaving your money invested 100% percent of the time, you are trading the market. You are determining when to enter and when to leave the market based on whatever method you use- that is market timing.
My point is whatever method you're using to trade the market falls under market timing - including risk control. Determining high risk and low risk goes hand in hand with knowing when to be and out of the market. Therefore to say market timing can't be done contradicts with any style of trading. If timing isn't possible, than trading isn't possible - which is why I said you needed to rephrase/restate what you said about market timing not being possible. =)
If you are not staying 100% invested all the time, you are timing the market.