About profound advice like "follow the price!"

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"Don't try to anticipate the market, follow the price!"

When you read that, it makes you feel like a sheep. It is so easy to follow the price and take profits, while you make some predictions and suffer losses. Can someone explain this principle?

I've always assumed that opening a position is based on some kind of prediction. Even if we open pending orders in both directions, it is also an assumption that the price will go further or return after breaking through the pending order.

So what do you mean by that?

 
In fact, technical analysis is also behind this thesis. And it says that everything has its time, for example, you should not predict the place of profit taking at the moment of opening.
 
wmlab:

"Don't try to anticipate the market, follow the price!"

When you read that, it makes you feel like a sheep. After all, it's so simple, and you make some predictions and suffer losses. Can someone explain this principle?

I've always thought that opening a position is based on some kind of prediction. Even if we open pending orders in both directions, it is also an assumption that the price will go further or come back after breaking through the pending order.

So what do you mean by that?

When they say that, they probably mean that you should not enter the market based only on a forecast of the direction. We should wait till the price really moves in this direction breaking through some local extremum and then follow the price. IMHO.
 
wmlab:

"Don't try to anticipate the market, follow the price!"

When you read that, it makes you feel like a sheep. It is so easy to follow the price and take profits, while you make some predictions and suffer losses. Can someone explain this principle?

I've always assumed that opening a position is based on some kind of prediction. Even if we open pending orders in both directions, it is also an assumption that the price will go further or return after breaking through the pending order.

So what do you mean by that?

I think you just need to learn how to correctly predict the market + your own tactics + complete analysis, and most importantly, never rest on your laurels. I'm constantly looking to improve my system. I'm always looking for improvements to my system, although it works fine in real trading. I`ve been doing a lot of mistakes in Forex since the stock market, but now everything is in its place and many views on trading and tactics have changed. As I have already said in many threads: every trade is a market forecast.
 
wmlab:

"Don't try to anticipate the market, follow the price!"

When you read that, it makes you feel like a sheep. It is so easy to follow the price and take profits, while you make some predictions and suffer losses. Can someone explain this principle?

I've always assumed that opening a position is based on some kind of prediction. Even if we open pending orders in both directions, it is also an assumption that the price will go further or return after breaking through the pending order.

So what do we mean?

Not necessarily to follow the price ("and cases are different..."), but what is probably meant is the harm of all sorts of "analytics" in general.

Because if you trade according to the TS, a forecast that coincides with its actions (like everything will go in your direction) does not work (the TS does not change from that), and a negative forecast for the TS is an extremely unpleasant thing, because if you trade according to the TS, your task is to implement the expectation laid down in the TS, which means you will still have to trade against this very analytics. Well, if instead of TS you try to use the same analysis, the result is a bit predictable...

 
wmlab:

"Don't try to anticipate the market, follow the price!"

When you read that, it makes you feel like a sheep. It is so easy to follow the price and take profits, while you make some predictions and suffer losses. Can someone explain this principle?

I've always assumed that opening a position is based on some kind of prediction. Even if we open pending orders in both directions, it is also an assumption that the price will go further or return after breaking through the pending order.

So what does it mean?

The statement implies that the price tends to stay in the same direction. And if you can clearly see that the price is going up, the trading plan should include buying, if you can see that it is going down, sell and if you cannot answer, fence.

And there's nothing profound about it.

 
wmlab:

"Don't try to anticipate the market, follow the price!"

When you read that, it makes you feel like a sheep. It is so easy to follow the price and take profits, while you make some predictions and suffer losses. Can someone explain this principle?

I've always assumed that opening a position is based on some kind of prediction. Even if we open pending orders in both directions, it is also an assumption that the price will go further or return after breaking through the pending order.

So what do you mean by that?


The original intention must have been to not try to predict reversals - don't catch bottoms and tops. And more simply - trade on the trend. But there are several trends at the same time, depending on the time horizon. That's why it's correct to say - trade in relation to certain trends :).
 
paukas:

This statement implies that the price tends to stay in the same direction. And if you can clearly see that price is going up, the trading plan should be to buy, if you can see that it is going down, sell, and if you can't answer, fence in.

And there is nothing profound about that.


And the Mashek poses in this case are perfect for stirring up fantasies and your actions...
 
DhP:

And Mash's poses are perfect for arousal in this case
This... this is a technical forum.)
 
Mischek:
This... is a technical forum, though.

My bad. Didn't take into account that not all technicians are familiar with technical analysis... )))

 
wmlab:

"Don't try to anticipate the market, follow the price!"

Friday? That's right Friday! We can talk...


It seems to me it could be rephrased shorter, highlighting the main point: "Trade with the trend". Which, given the innermost "the trend is more likely to continue than reverse" has the right to life. But there are a lot of other moments, what is a trend, and what to do if it is down on the daily chart and up on the watch... It's a lot of nonsense.

And all this verbiage is probably for hand traders with a computer instead of a head. They're just shaking pips and teaching each other these obvious things. For me I have no idea how my experts trade, I look at trades and get baffled, they open: some against the trend, some against it, some against it and I don't understand it at all, but if the end result suits me, why should I care?

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