How to Game the Trading Game | Larry Williams

Tutorial   #indicator #larrywilliams  

Here are what I think most thought-provoking or valuable takeaways from this tutorial, and those are regarding #LarryWilliams' view on how to use #indicator to help trading.

Thought-provoking Takeaway: mechanical traders vs discretionary traders: according to Larry Williams, successful traders he experienced were discretionary, however, this view may be controversial.

Valuable and Thought-provoking Takeaway / Insight on Trend: Why Trend is important? Because it's the basis of profit. What is Trend? What creates or causes Trend? Trend is a function of Time, although this is a simple statement, it has profound insights to the concept of Trend which is critical to investment success. My understanding of this statement can be broken down to the following perspectives

• entry point selection of a trade: the longer you wait, the low point of a bigger trend you capture
• exit point selection of a trade: the longer you wait, the high point of a bigger trend you capture

Valuable Takeaway, the secret of how to use indicators:

• no single indicator or chart can do all the work, a combination of indicators is needed to make good decision
• most indicators are redundant, those really useful indicators each need to serve a different purpose

Purposes of indicators are

• Accumulation
• Trend
• Fundamentals
• Overbought / sold
• Sentiment: Commitment of Traders Report from US government
• Seasonal
• Cycle