i have long claimed that playing the market is akin to going to a casino where every stock is traded inside its own squared circle, all of them happening amidst a WWE choreographed script, with promoters, heels, baby faces, refs, managers, fans, etc., and the smarks all know its staged. seeing through the facade, however, takes an understanding that few actually have.
first off, there are three tables in these rings, and each represents a different game and style from the others. for the daytraders, whose game might be measured in minutes to hours, there's the roulette wheel; up or down, red or black, the sole tools used are volume and news. for the position players, traders who work over the course of days, weeks, and maybe months, there's the game of blackjack; where the most prevalent tools are the charts and trading logs used to determine whether to hold, fold, or take cards. lastly, there are the true longs, investors willing to wait years if need be in watching the cards get turned over in a game of five card draw; for them its all about the developing story, one they track through the news and filings that keep them abreast of the progress they look for.
the trick in all of this is in first knowing who you are, then determining a strategy, and, finally, learning how to filter out the noise of all those participants in the staging.
the tape, btw, is always rolling.
