Do You Really Need 10,000 Hours Of Screentime?

Posted by on Aug 2, 2015 in Blog

I have spent 20 years watching and trading futures based on order flow. The same concepts still apply from 20 years ago or even 100 years ago as they do today. When the price of something is cheap people buy it and it becomes a low. When the price is too high, people sell it and the high is made.

What order flow provides the trader is the ability to stay out of the market when there is no reason to trade. It allows the trader to see both sides of the market, what is trading on the bid and what is trading on the offer, and gives the trader a far better view of the current state of supply and demand than the ordinary trader will struggle to see.

I have met a lot of floor traders in my life and some of the best have told me they get a “feel” for the market. While this may have been true during the days of open outcry because you can see and hear the trading going on based on the noise level and hand signals flashing back and forth. Unfortunately now the open outcry trading floors are closed and everything is traded electronically. It is hard to get that “feel” on the market anymore. Even when I think about it, having a “feeling” on the market has gotten me into more trouble than I care to mention.

However I believe that anyone can learn to “read” the market. Reading the market allows you to know where buying and selling is going on or drying up. Reading the market allows you to know where solid highs and lows have been made.

 

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