Predict Market Direction vs React To Market, Which Strategy Do You Believe in to Work ?

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  • 32% (40)
  • 54% (68)
  • 14% (17)
Total voters: 125
 
'Both works' option is missing...
with a good risk management many strategies work!
 
Pablo Jaguanharo Carvalho Pinheiro #:
'Both works' option is missing...
with a good risk management many strategies work!
If option 1 and option 2 is sufficiently high, then we can take it as both works.

I also respect both strategy.
 
Everything works, just not all the time.
 
I prefer predict market . But i will stop trade when market reaction against my prediction
 
Predict the market is less strenuous, reacting to the market is too time dependent, not looking at the chart at the exact time could make you miss a trade you have been planning for weeks, all the work goes into the drain
 

If you choose "Both stratgy does not work" option, then it would be nice if you can tell us what strategy works in your case.

Probably, I guess it is something outside the entire technical analysis space.

But you never know what it is until you tell.

 
Thank-god Avwerosuoghene Odukudu #:
Predict the market is less strenuous, reacting to the market is too time dependent, not looking at the chart at the exact time could make you miss a trade you have been planning for weeks, all the work goes into the drain


You are correct about "reacting to the market is time dependent".

As science improves our daily life each day, the science improves the trading strategy too.

In fact, when you measure the turning point probability from the current price to the support or resistance, you can anticipate if the price could make the reversal or breakout at the support or resistance level.

In short, you can turn the support and resistanct (i.e. reacting to the market strategy) into the predict market direction strategy in this way. This approach is less time dependent as you can anticipate the price action even before the price reaches the support or resistance.

This does not mean that you have to adapt new approach. You can still remain as it is.

I just wrote this to spice up the discussion about the trading strategy.

 
Market predictions are more relaxed in making trades and usually long term trades, React to market can only trade in very volatile market conditions and short term trades, and is very stressful.

so which one is better? or which one is more workable?

Definitely both can work well, depending on our own trading style.
 
How can I join
 
Young Ho Seo:
  • Predict Market Direction (Trade after you predict buy or sell market direction using the technical analysis.)
  • React To Market (Trade if price is pushed to one direction as in support resistance or some sort of breakout trading. You never predict market direction but you react only. )
  • Both stratgy does not work
You are forgetting another option (and there are probably more). In this case I am referring to playing the odds. By this, I mean that you neither predict nor react, but instead your strategy is based on statistics and the probability of certain outcomes over a longer term of several trades instead of just the current trade.
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