As mentioned before, I've been reading a lot of trading books on the stock market as I find that many principles can be applied to trading on the exchanges. Today, I tried out some technical analysis based strategies (mainly using moving averages) with good success and a profit of €16.97 is decent considering the stakes were small. I'm not going to include this profit in my challenge as I had decided beforehand that it was test trading money.
Some people love technical analysis as you can essentially build systems on the data, while others say that past data is useless at predicting what will happen in the future.
I'm somewhere in-between. A lot of the price movements are fairly random and I can see why some people don't believe in TA. However, I also realise that markets, or rather the bettors in them, have memories and will take positions based on previous bets and trades. There's also the people that believe that the 'trend is your friend' and will hop on the bandwagon when the see a rise or fall in prices. People also like backing at certain prices (round numbers for example) and this can be seen on charts - So to say it's completely random would be wrong, although you have to be aware of 'noise' and not let it influence you.
Anyhow, I'm happy with how I done today and look forward to reading more on the subject...
What's more, I've got my hands on "Wall Street" on DVD so I hope to have an enjoyable night in front of the box!
“Whitbread” Gold Cup 2017 (Sandown)
16 hours ago