Forex Automaton

"I noticed that in advances as well as declines... prices were apt to show certain habits, so to speak. There was no end of parallel cases and these made precedents to guide me. I was only fourteen, but after I had taken hundreds of observations in my mind I found myself testing their accuracy, comparing the behaviour of stocks to-day with other days. It was not long before I was anticipating movements in prices. My only guide, as I say, was their past performances. I carried the "dope sheets" in my mind. I looked for... prices to run on form. I had "clocked" them. You know what I mean... Another lesson I learned early is that there is nothing new in Wall Street. There can't be because speculation is as old as the hills. Whatever happens in the... market to-day has happened before and will happen again."

-- from Reminiscences of a Stock Operator, a classic by Edwin Lefèvre, inspired by the biography of a legendary trader Jesse Livermore, an author himself, who made and lost fortunes, was like catnip to women and commited suicide at an age of 63.

"...I hope to prove that traditional approaches such as the economic indicator approach do not work. No consistent correlation exists between the U.S. dollar and U.S. economic indicators, but conventional wisdom says that the two move in lockstep. Why is this approach followed so fervently if its foundation is rooted in falsities? The reason that markets move in identifiable patterns is probably the same reason that many accept as gospel the conventional approaches to market analysis and trading that have marginally successful track records at best. That reason is the propensity for humans to follow the crowd, especially in situations as emotionally driven as trading. ...I think that I can share with you a better (and cheaper) approach to analyzing and trading the FX market, an approach that will give you an edge, if only because you are not following the crowd." -- Jamie Saettele, Sentiment in the Forex Market.

Share Your Opinion