Newton Linchen's Insightful Comments

I always look forward to my dear friend Newton Linchen's insightful comments, critique, advice and direction. As a Speclist author, Trader and a great teacher willing to share his ideas, he has been a source of inspiration even in difficult times. I take liberty to post his comments here.

I rejoice to know you are involved in such a high standard project.Most brokerage houses are just interested in commissions, whether or not the client learns something or is profitable.
To develop an environment in wich is possible for the customer to grow, both in wealth and knowledge, is indeed a noble way to do business.
May all the good influences come in your way, and may you, your partners and clientes prosper!Regards from Brazil,
Newton Paulo Linchen
www.markettiming.com.br

Fading Other Traders' positions

Assuming Day Trading is a fight between participants in the trade, Is there an edge to fading other traders positions ?

1. Trading floor used to give advantage of reading other traders or Tells.
2. Can similar edge be gained in brokerage trading rooms where novice traders positions are displayed to all?
3. What are the characteristics of "fadeable" traders ?
4. I am surprised to find sometimes the positions of other traders overriding all indicators, TA patterns will give a clue to short term positions.
5. If daytrading needs flash opinion on a stock what better market tell than an injured trader on the other side?
6. This may sound cruel but the practice of deception is the nature of the market.
7. Some characteristics of the trades I can fade are

• When there is a random stop on a losing trade
• Trader has taken a position rather than voicing his opinion
• Revege trading is visible
• Trader is trying to break even
• Cursing or exhorting the financial instrument
• Entering into trade to avoid regret
• Lowering stops on a losing trade
• Avoiding when the trader is strong or profiting in the trade
• Quick and random profit booking by the trader for emotional reasons
• Larger than normal size by the trader
• Timeframe of fadable trader should match your own

Can these observations of traders strength or weakness in a particular trade give an edge at least for entering the position and relying upon TA and indicators for managing and exiting the trades ? I had lot of anecdotal evidence of Stockbrokers fading the positions of their clients when they run their prop books.

Can the daytrader use this as a shortcut cutting across opinions , news, TA and Random noise?