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Near Vancouver BC CANADA
Experience: Intermediate
Platform: NinjaTrader -- IB
Trading: Futures
Posts: 32 since Mar 2011
Thanks Given: 28
Thanks Received: 58
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The answer is, you first need to figure out what your trading style is. Don't mix styles that is always a disaster.
For example, I now follow the idea that “it’s all in the chart” so if someone big is moving the market that shows in the chart so ignore everything news wise. However, I did trade at one time day trade with a bunch of guys who listened to a service called trader audio ( || Welcome to Traders Audio ||) and you could hear the big boys make a bid in the pit on the full size SandP and sure enough the market would turn. Almost every time the commentator would mention the Goldman was buying, you could just feel the whole thing turn. It was exciting, a bit like going to the racetrack or an auction.
On the slower time frame there is also a whole industry trying to figure out what the big fish like Paulson is doing long term. CNBC calls it Whale watching. But hey those big guys make some big mistakes, and they often cannot play the same things we can just due to their massive size. For example I am in love with a mid size stock that is an expanding national chain, but if Buffet went in there they could buy the whole float in minutes and it would not even make a foot note in the BH annual report.
I think most traders come to the same idea as Jesse Livermore, who "always played a lone hand". Frankly if all you are going to do is buy what the big boys are buying, just get a mutual fund or join a hedge fund and save yourself the aggravation.
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