Market Sense

We have 5 senses and some claimed to have 6 senses but to be successful traders, we need Market Sense.

I have been trading on the floor for 20 years without charts, didn't know how to operate the Bloomberg or Reuters machines for news or charts. In fact, many of those successful floor traders were like me, blur like sotong when it comes to technicalities of trading.

What we have is Market Sense or a good gut feel of the market rhythm, the players and a deep understanding of the nature of the contract. There are only 2 directions for the market, it's either up or down, what's so difficult?

Being very self motivated, I read a number of books on charting and the various strategies, but I couldn't apply them successfully in my trading. I have problem remembering all those chart patterns, waves or numbers and felt price action is so random that I lost faith in them.

Converting to electronic trading has been really tough for some of the floor traders, many failed and leave the industry. I was forced again to revisit charting as a tool to my trading. I failed miserably and struggled for more than 2 years looking for the holy grail in chart patterns.

Price action is really random, as what Mark Douglas wrote in his book "Trading in the ZONE", the no. 1 principles of trading "ANYTHING CAN HAPPEN". Whenever a chart pattern fails, the technicians called it "false signal" or "false break" and it happens probably 50% of the time!

Charting is just a small part in the overall factor of a successful trader. Over emphasis in this area is what separates the amateurs from the professionals.

I tried trading the SIMSCI during the T+1 at home for the past few nights. I started tracking the market at about 8.15 pm before the data, news release and US market opening at 9.30 pm Singapore time.

I used a laptop with a wireless Internet connection to trade giving up the most important edge in my trading, speed in execution. Luckily for SGX contracts, I lose out only in milliseconds because the TT platform is still extremely fast.

I opened up the trading ladder for SIMSCI, Taiwan and the S&P as a guide with no room for any charts. I watched the movement of the S&P and put in my orders in SIMSCI hoping for some Yum trades, trading 1 contract at a time due to the thin volume.

I made a few hundred dollars each night for 2 to 3 hours work. No Charts! Was it luck or skill? I made money every night, will it last?

I don't normally trade at night so that I can have a good rest plus all my screens are in the trading arcade.

I think I have good market sense for the contract I am very familiar with.