Anticipatory v/s Reactionary Trading
- Thread starter trader111
- Start date
Why do most traders lose and wash out of the markets??? Emotional and thoughtless trading r 2 reasons.. but ...there is another.....
mkts r set up actually ... so that most traders must lose money......
mkts r set up actually ... so that most traders must lose money......
Can any one explain this behaviour?
VPS
I fail to see a logic behind comparing the movements of NIFTY and a scrip like JPAssociates. Though we call "Bulls" & "Bears" for a logical understanding, we may not know who are doing what and for why with a scrip. It need not be a "manipulation" every time. People book profits; long term invested institutions book profit; people sell in huge volume to tally their own positions...possibilities are endless !
The essence of trading lies with coming out with some system that could help us to understand what is happening in the market. I agree, this could be ambitious. But if we understand this, we may refrain from blaming Bulls or Bears for our own trades.
The essence of trading lies with coming out with some system that could help us to understand what is happening in the market. I agree, this could be ambitious. But if we understand this, we may refrain from blaming Bulls or Bears for our own trades.
yes bro. with u
if one see fridays trade mkt did not went much higher
but i made some good bucks in reliance capital
so IMO line to line correlation is impossible
coz on the same day my friend made good bucks shorting tcs
i think it is individual strenght of each instrument for which traders jump on the board rather relative strength of the scrip with the over all mkt movement
though that has also some effect on a bearish scrip on a bearish day and bullish scrip on a over all uptranding day.
may be i am wrong.
if one see fridays trade mkt did not went much higher
but i made some good bucks in reliance capital
so IMO line to line correlation is impossible
coz on the same day my friend made good bucks shorting tcs
i think it is individual strenght of each instrument for which traders jump on the board rather relative strength of the scrip with the over all mkt movement
though that has also some effect on a bearish scrip on a bearish day and bullish scrip on a over all uptranding day.
may be i am wrong.
I tend to get involved with both types. In general, the best trades I've picked up on tend to be anticipatory (leaning a combination of the two); but the most solid are often reactionary. A parameter that is always useful is to look at news flows relative to PCR and spot prices relative to moving averages. In an oversold market a bit of positive news often creates an exaggerated contrarian move. Citi news in an oversold Dow is a good case in point.
