I have researched numerous volume included indicators and have found nothing I felt comfortable using. I figure when a trade is done, there’s a buyer and seller and both accept the deal or the trade does not happen. I rate that trade as neutral, not bullish or bearish. I therefore ignore volume.
Thanks Tom! I love how you simplify things. Some of us can complicate a ham sandwich. That would include myself. But I am getting better and I have learned a lot from you !
So many times I have “thought” a breakout was instead the logical place to exit with a modest profit, when - after resting there for a few days - price proved me wrong by carrying on upwards. It’s hard to buy new highs unless you also accompany that with Tom’s recommended stop loss. I’m grateful for your pearls of wisdom. Thanks.
"Eliminate that filter of the interest rates and go with every breakout with that stock and you will never miss out on a big move that you can let run and produce the profits you seek. If the breakout doesn’t carry very far, cut your losses quickly with a stop in place, free up your equity, and move on to your next trade."
We fully agree and never had any good success with filters and overlays. They reduce sample size and result in a more fragile system from a statistical point of view. Rather than trying to be 100% precise on the entry, just go with it. The worst thing that can happen is a small loss.... and so what? Take that loss and move on.
I have researched numerous volume included indicators and have found nothing I felt comfortable using. I figure when a trade is done, there’s a buyer and seller and both accept the deal or the trade does not happen. I rate that trade as neutral, not bullish or bearish. I therefore ignore volume.
Excellent advice
Thanks Tom! I love how you simplify things. Some of us can complicate a ham sandwich. That would include myself. But I am getting better and I have learned a lot from you !
"I completely ignore all my logical thinking when trading." So good!
Subtraction in life is so much more difficult than adding tasks to one's schedule.
So many times I have “thought” a breakout was instead the logical place to exit with a modest profit, when - after resting there for a few days - price proved me wrong by carrying on upwards. It’s hard to buy new highs unless you also accompany that with Tom’s recommended stop loss. I’m grateful for your pearls of wisdom. Thanks.
Amazing post, thanks Tom!
"Eliminate that filter of the interest rates and go with every breakout with that stock and you will never miss out on a big move that you can let run and produce the profits you seek. If the breakout doesn’t carry very far, cut your losses quickly with a stop in place, free up your equity, and move on to your next trade."
We fully agree and never had any good success with filters and overlays. They reduce sample size and result in a more fragile system from a statistical point of view. Rather than trying to be 100% precise on the entry, just go with it. The worst thing that can happen is a small loss.... and so what? Take that loss and move on.
Hi Tom, do you consider volume at all in your trading?
Such simplicity and beauty!