Nasdaq, Inc.شراء
Information consume attention
I]n an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes. What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it. (Simon 1971, pp. 40–41) Wikipedia
― Herbert Simon
Are we not living in an excessive abundant of information overflow today ? The depth and breadth of information that one can find on any topic online is beyond one's imagination. And as in trading, things have also evolved compared to 20 years ago.
We have now more indicators than before, more robot trading systems that you can think of and more ways to dissect the information available. Is this good or bad ? I think it is good for those who wants to have more information to help them understand at different levels. Imo, I think it can be way too much to use or rather been thrown at you when you used this information for trading/investment. It not only takes away your attention, leading you to rabbit holes that you are not supposed to go to. You end up miles away from your intended purpose and possibly may trade other products as well.
That explains why I have given up on all other indicators like RSI, MACD, Stochastic , Bollinger, Moving averages, Volume, so on and so forth. Just these few alone drawn on a chart can elicit confusing messages and thus it paralyse my thinking, make me more fearful of trading as if I need more certainty and more confirmation each time.
No matter how we slice or dice the game of trading, it is nothing but a game of probability. Till now, there are two camps, the bulls who believe all bad news are already factored in and the stock market fuelled by fiscal and monetary policies are ready to soar again. There is no turning back as evidenced on the chart.
The bears , however felt that the disappointing and bad data like jobless claims , declining GDP growth, recessionary pressure, bankruptcy, etc are brewing into a storm and will hit the market soon. That means, this reversal we are seeing now is nothing but a dead cat bounce.
Only time will prove who's right ! As of now, the bulls are winning as we see no stopping of the ferocious bulls charging up and up, much to the delight of the buyers and disappointment of the sellers.
Then, we have analysts that compare charts to the 1930's and also others who quote different indicators to show the resistance and so on. Tons of information are found online and constantly updated.
You , as a trader must draw a line and decide how much is enough before you use whatever available information you have and make a decision out of it.
In my case, it is the same old techniques I have used over the past years - trend lines, support and resistance, price action. Even this alone, I need more practice to truly master it and be good at it.
And like I have said quite a lot on my posting as well is the psychology of trading that is the hidden enemy. Not the jobless claims or President Trump tweets. Those are external circumstances.
The rules are crystal clear but the person executing the rules is a human being and he has emotions. And this emotions can run havoc on some days and mess up your trading game. In some way, I was lead or mislead to think the recovery is fake and probably a dead cat bounce (only time will tell) so I gather more and more information to justify to myself that I am right.
This is where I flout my own rules of trading. Just because I have been doing it daily does not mean I will not make mistakes. In fact, complacency sets in and the need to be cautious and trade according to the rules (simple rules) are taken for granted and the smart aleck in me would want to bend the rules. We think we are better , we know the rules well and want to control it. We end up with losses, painful lessons and a bruised ego.
Like Ray Dalio said, we need pain and reflection in order to progress. I am thankful to TV for creating this platform which allows me to reflect my thoughts in a naked way and allow criticism and feedbacks for checks and balance.
In this chart and it would be the same for DJI and SPX500, we are reaching the level where the price fell hard. In this case, it is 116.73. That means, if you have bought at the bottom or near bottom, watch out for the resistance, take some profits and watch closely.
For those who are late into the buying, I suggest you to be careful if you want to trade, perhaps 1H or 15 mins chart for a short run up. Short sellers will be awaiting at this level to bring the house down. Next week will be exciting , let's see how it turns out !
― Herbert Simon
Are we not living in an excessive abundant of information overflow today ? The depth and breadth of information that one can find on any topic online is beyond one's imagination. And as in trading, things have also evolved compared to 20 years ago.
We have now more indicators than before, more robot trading systems that you can think of and more ways to dissect the information available. Is this good or bad ? I think it is good for those who wants to have more information to help them understand at different levels. Imo, I think it can be way too much to use or rather been thrown at you when you used this information for trading/investment. It not only takes away your attention, leading you to rabbit holes that you are not supposed to go to. You end up miles away from your intended purpose and possibly may trade other products as well.
That explains why I have given up on all other indicators like RSI, MACD, Stochastic , Bollinger, Moving averages, Volume, so on and so forth. Just these few alone drawn on a chart can elicit confusing messages and thus it paralyse my thinking, make me more fearful of trading as if I need more certainty and more confirmation each time.
No matter how we slice or dice the game of trading, it is nothing but a game of probability. Till now, there are two camps, the bulls who believe all bad news are already factored in and the stock market fuelled by fiscal and monetary policies are ready to soar again. There is no turning back as evidenced on the chart.
The bears , however felt that the disappointing and bad data like jobless claims , declining GDP growth, recessionary pressure, bankruptcy, etc are brewing into a storm and will hit the market soon. That means, this reversal we are seeing now is nothing but a dead cat bounce.
Only time will prove who's right ! As of now, the bulls are winning as we see no stopping of the ferocious bulls charging up and up, much to the delight of the buyers and disappointment of the sellers.
Then, we have analysts that compare charts to the 1930's and also others who quote different indicators to show the resistance and so on. Tons of information are found online and constantly updated.
You , as a trader must draw a line and decide how much is enough before you use whatever available information you have and make a decision out of it.
In my case, it is the same old techniques I have used over the past years - trend lines, support and resistance, price action. Even this alone, I need more practice to truly master it and be good at it.
And like I have said quite a lot on my posting as well is the psychology of trading that is the hidden enemy. Not the jobless claims or President Trump tweets. Those are external circumstances.
The rules are crystal clear but the person executing the rules is a human being and he has emotions. And this emotions can run havoc on some days and mess up your trading game. In some way, I was lead or mislead to think the recovery is fake and probably a dead cat bounce (only time will tell) so I gather more and more information to justify to myself that I am right.
This is where I flout my own rules of trading. Just because I have been doing it daily does not mean I will not make mistakes. In fact, complacency sets in and the need to be cautious and trade according to the rules (simple rules) are taken for granted and the smart aleck in me would want to bend the rules. We think we are better , we know the rules well and want to control it. We end up with losses, painful lessons and a bruised ego.
Like Ray Dalio said, we need pain and reflection in order to progress. I am thankful to TV for creating this platform which allows me to reflect my thoughts in a naked way and allow criticism and feedbacks for checks and balance.
In this chart and it would be the same for DJI and SPX500, we are reaching the level where the price fell hard. In this case, it is 116.73. That means, if you have bought at the bottom or near bottom, watch out for the resistance, take some profits and watch closely.
For those who are late into the buying, I suggest you to be careful if you want to trade, perhaps 1H or 15 mins chart for a short run up. Short sellers will be awaiting at this level to bring the house down. Next week will be exciting , let's see how it turns out !
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