Well said Pattern43. I've seen some Hall of Fame flakes since when I started in the business back in 1978 and this guy is close to the top. I just wish he'd give more real-time trades so I could fade him. That's the best thing about ET...all of the fading opportunities that present themselves.
pattern43: I decided to take an objective look at the purpose of man. What is the purpose of man? Is it to follow a set of rigid rules that was dictated by another man? What was the purpose? What separate, if anything separate man from animal? Thinking about it what's the purpose of any animal? I came up with basically 2 ideas. The first is that man is more conscious then animal (while animal is conscious, man is more conscious) and therefore he should strive to be ever more conscious and the second property is that man is a tool builder or a technology builder therefore the purpose of man is to build technologies that help man and animal. So, we have 2 guiding principles for our purpose: to Create and to be aware. If you think about someone studying any subject they like. They are becoming aware and making connections. Trading is the same. It is just making connections. I'm a pesco-vegetarian and I do feel there is something not right with trading animals for consumption. There is something I don't like about that. But, I wouldn't trade a meat. So, I wouldn't take part in that -- just like I don't trade my money for you know meats at the grocery store. Most of what I do isn't even competitive. I see it is a fair game. Traders hurt themselves. A trader has the ability to get out of at trade whenever he wants. I think that if you're going to trade you have to accept responsibility for your actions. I mean let's think about it: The risk is inherent. It is not a created or artificial situation like a poker game. Even if it is, the risk is already in play. Okay and second any trader steps in the market is coming to the market to trade presumably against the best there is. It is like uhm a poker game. Okay people sit down all the time with professional players. They want to play the best. Realistically, they know they're not going to beat the pros but the pros get action because people want the shot. Even so, you know I do feel trading is a better activity all around then any sort of gambling. I mean, I view trading as the pure game. Let's take the worst case scenario which I don't even believe because I can't move the market. Worst case scenario, let's say I blow out another traders account (impossible). But let's imagine it was, as I said everyone can be great at something. Even in that case, this failure may be the inspiration for him to go and pursue something he enjoys, something he can do well. That is capitalism which can be ugly at times but is IN NO WAY limited to trading. It happens with any sort of business. At its ultimate, I can't live without trading in one way shape or form. If I go to the grocery store I trade my money for food. But what is good? What is good is that which moves man to his ultimate purpose: as a tool builder, a creator, and one who is aware. What is evil? To be deceived, to be unaware. To be disconnected.. What is good? To serve and to make connections.. to be aware. To be online.
Compassion is good and like my mentor I'll give back some of the lesson that I've learned. First, precise language is I think useful. The word "fade" means to fight or to go against. I don't like the word. I'll trade reversals. But, I guess that's just a pet peeve. I never understood a breakout but sure I'll buy momentum. Precise language leads to clear thought. Mean reversion or reversal reversion? If you know the true mean, it always works. Right. Let's get serious.. what's the real lessons? The real lesson is to really learn your market. I think the lesson is that I integrate vast amounts of information. That's what I do. I synthesize vast amounts of information. I thought my tape reading skills were everything but they are not. It may not even be an edge when used in isolation. But when I combine with other tools then it becomes useful. The real lesson is to become, really become a student of the market. If I see one problem with traders is they don't want to become students of the market. They become students of what other people, often rainbow merchants, think,write,believe, etc..
Lol. This kid is even more entertaining than Increasenow. http://www.elitetrader.com/vb/showthread.php?s=&threadid=213502&perpage=6&pagenumber=1
Lucias, If you knew anything, to fade means to find out what a loser like you does and take the other side of the trade. It's easy and easy to quantify the eV with someone like you. I once wrote this back in 2007 at a traders website that you need not concern yourself with. I said: I probably have enough info gleaned from old-time pit traders to write a large book. I loved to hear the stories and teachings those old guys had to share, and sought out as much of it as they were willing to tell me. However, much of that information is anecdotal and it would be hard to apply the scientific method to most of it. I did learn a whole bag of tricks for extracting extra cash while trading in the pit, but most of the tricks are either mechanical in nature, or educated guesses (such as estimating how much wheat is for sale in the pit at any given time). I did learn one slam-dunk way of pulling out money out of the pit. I worked hard at identifying new, inexperienced traders who were certain losers, and fading all their trades. This technique worked out very well for me. However, identifying certain losers is a skill in itself and takes time to develop. Pit traders can have a special insight/feel for the market, but only the net winners have that feel. A majority of those who step up to the plate to trade don't make money, and fade into oblivion. Have a nice day.
pattern43: You may wonder why did I have to go into "what the purpose of man was" in order to answer your question. It was because evilness is against the purpose of man. But, to determine he purpose of man we have to use a methodology and the methodology was an observation method that I felt was fair, rational, and also that felt right to me. In making any decision there is a methodology one can use, right. I can make a decision on theological arguments or scientific arguments or any other number of reasons. For example, I chose to be a vegetarian based on a rational model of the expectation of consciousness of animals that have similar brains to my own. First, I tried to show that risk was systemic and then I showed in a capitalistic society we can't survive without trading. Now, you may argue that what I described as a trade was really just an exchange. Maybe you want to argue that speculation is evil. Okay..but remember that every hedge has as a speculation and every speculation has a hedge. And this something I've only started to see. Let's get to example, let's say you're looking to buy a house. Okay, you don't have to buy it now but you need one to live in okay. Now, you do some research and you believe housing prices are going to rally and decide to buy. So you're speculating that housing prices will rally. So you buy today. But, you're also hedging against a decline in the dollar to the value of the house. Call it the HOUSE/USD pair. You see you can't avoid speculation. But, let's say we do away with money. There is still trade. Let's say you make a society that has no money there is still some sort of trade. So, hopefully if you read through all my answers that you'll begin to appreciate my perspective. We often call things "evil" that we don't like and if you don't like trading then obviously I'd encourage you to find something that you do like.
It is irrelevant because I also have to buy (support) those same companies. I don't know a single vegetarian restaurant that I frequent. Even if I could only choose vegetarian restaurants then I still have to buy groceries from stores that sell meat. Even if I could only buy from a store that didn't sell meat, I still have to buy gas and the gas station typically sells some sort of meat. Just as importantly, there is no harm caused. There is no harm caused because my buying/selling the index (or even a company) will not impact the demand for meat which means therefore it can not impact the supply of meat. Your argument has no basis.