Australian (ASX) Stock Market Forum

Reply to thread

The responses to this arguement suggest to me that a lot of people don't understand the science of trading (Not your response Nizar, not at all, I just chose it to post off as you posed the question well).


There is an opportunity factor to any trading system, mechanical or systematic (discretionary).  Call it trade frequency if you like.  The microcosmic nature of markets tends to mean that you can do as some do and zoom in to the 15m, 30m or 1h timeframe and you will see the same trend behaviour and patterns as you do on a daily or weekly timeframe, only with greater frequency.  This can increases the opportunity factor or the trade frequency.  Couple this with leverage (lots of leverage...think CFD 1% margin on indexes type leverage) and with one good trade a month on a single instrument you can achieve better than what others use an end of week system across a universe of stocks.


Of course if you don't know what you're doing the adage, 'speed kills' will apply.


Top