TE if you deem this posts has no relevance or is not appropriate here, I will gladly withdraw it with no offence taken. In thinking about this thread and the role of education my mind veered off on a tangent regarding the rule of three (particularly as it pertains to writing). It is prevalent in almost all storytelling, but especially in origins, comedies, and children stories/morality tales, so that by a very young age it is deeply embedded in our brains and perpetually reaffirmed throughout our lives. It has a profound effect on how we observe events unfold. The timing between these events can be very significant depending on the situation. e.g. Three events in rapid succession vs two events in rapid succession and a delayed third event vs three equidistant events all adhere to the rule of three but can leave dramatically different impressions. In spite of these differences we can all easily identify a simple pattern of three events. But how do we do this so effectively to receive our psychological payoff? I did some exploring into my own process while reading a short story and came up with the following: The first event I would call an anomaly. It has not happened before and I recognize it as a novelty. The second event I would call a coincidence. I recognize it as an event I observed in the past. This event is now familiar to me but I can draw no further significance from its occurrence. The third event I initially called confirmation. I recognize the events as recurring. I also receive a positive psychological payoff for making the connection between the three events. Based on these three events I draw conclusions about the relationship between these events. Because I now believe there is a pattern I attribute a significance to occurring events. {just now I noticed the exponentially increasing complexity of my own explanations with each subsequent event} I suspect that many people out of habit or instinct attempt to trade with this thought process . In my experience this is not a good approach to interpreting unfolding events in markets as the market does not care one iota about the rule of three. Im not sure how to correctly define the third event, but Im certain its not confirmation even though ive been conditioned to believe that it is. Just some thoughts... C.W.
http://www.youtube.com/user/smalin Very nice classical selection. Relaxing and easy on the eye for a chartist to watch.
The "education" which is viable to trading is based upon deduction and logic. Those things most can learn. The other important aspect is "discipline"... I don't know of any academic pursuit which teaches that.
If you but be, then you will see Ready must you, else miss the cue You need not know, for that is slow But act you must, when rise the dust A picture you say, what of today Or day before, a week or more Many not know, it is just Big Show To win all that $ollar, you need not be scholar TE he did say, not just yesterday That if it went down, might stop at the crown We care not if stop, for fall if it will But ready we must, and not stand too still I know of some, who do all the sum Many hours at LCD, with many to SEE The square and the round, it fits like a sound So sweet to the ear, and makes them all cheer TE thinks them wrong, and sing the wrong song Even though they seem right, it not what in sight A thinker you see, will think what he see And not let a shape, prevent the escape So when you do LOOK, think of a BOOK For words they do show, what reader do know And if you know naught, but always keep thought Then you will see, what a picture will be Nice one RN, and, your Poetry has improved greatly TE
a picture is past, only riff raff past makes no money, but keeps fools looking for honey all you need is to bet, to align with the rest for green gives more green, and red is quite mean so do more with less work, let the rest go berserk the market pays all, who know how to lose small
CW, you are free to post what you want anywhere, for, there is no such thing as the right or wrong thing, as, things are what they are and will be what they will be. Personally, I think the ROT, Golden Ratio, Law of Seven, and what ever others are there, of which I guess they are many, well, are just rubbish:eek: The only thing that we know, is that we know absolutely nothing Of course, we all know something, but you know, that when we speak of "knowing nothing", we are really speaking about continually learning, each and every minute of the day. Last year, a Swallow (well, 2 actually ) decided to nest in my boilerhouse, as I was silly enough to leave the door open, so, the nest was just above my head and I could easily see the eggs in the nest. I put in a camera to watch the bird. It was amazing to see the care the Swallow took in turning the eggs, and how she would never be gone for too long. The biggest surprise, after hatching, was how fast the little birds grew. From tiny funny looking things with no eyes and big mouths, to beautiful young birds eager to jump out of the nest for the first time. It was a very nice thing to see over te weeks I watched them develop and eventually fly out and learn from the parents how to maneuver and feed Sometimes we can learn a lot from things we would never think of looking at. TE Guess who is getting most of the food
To be clear, with no fear Is to see, what will be To think you will win Is indeed a grave sin So lose when you must And shake off the dust For the next time, you see What will be, well, will be
I prefer the saying, "Common sense is not all that Common" Sometimes, I am reminded just how much experience I have gained in the markets, when, people I know come out with silly things like, " This fellow made a killing on the banks, and he has told me that bank X is a very good buy at the current price" " How do you know what stock to buy?" "At what price do I get in?" "At what price do I get out?" "Where do I put my stop?" And, I am sure you have heard many more also. It is obvious that most people do not take trading serious, and treat it like backing a horse, for, if they did, then they would make a conscious decision to learn what is required in order to understand what it is they are trying to do, and, how best to go about doing it. Common sense, really! TE
I've been trying to see how you place your lines and am having a little bit of trouble figuring it out. For example the 1067 level? Why is there a line there? I was thinking you either put the lines at a price level where either a lot of shares where traded ( a horizantal cluster where prisce spent much time.) Or where it was thinly traded ....for instance where there is a bottoming tail and only a few shares where traded there. I would assume that from these lines I would be looking for a low risk high reward scenario but still having some trouble figuring exactly where to draw these lines.