So we can safely conclude that the New Trader is a social animal, motivated by cheer not fear, and who has sublimed greed into need. By following he thinks he leads. And he mistakes his guru's needs for generosity. My firm is busily at work developing new systems to test his credulity.
GREED and FEAR is the ultimate FORCE in the market.. majority of the time the market is flat and no direction, no volume, just some traders flipping burgers intra-day with each other..nothing is produced...even the price is wrong....
Those of you who manage human traders might be interested in our office trading policy. Every morning we load up each monkey's trading screen with three buy/sell pairs. If a monkey's first trade is a winner, we give him another buy/sell pair. If it's a loser, we don't replace it. If a monkey loses all three trades, he's done for the day. We're the main source of supply for the Asian market around the corner.
As you might surmise, this process of unnatural selection leaves us with a core cadre of pretty smart monkeys. They get the bottom pane in the attachment added to their charts.
I take it that you have a buy and hold strategy in place on monkey futures. Just a question if I may Do you roll the contracts forward or are you taking physical delivery. cheers f9
Actually we have a complex hedging strategy in two related contracts. We long live monkeys and short slaughtered ones. We are the ax in the market, and we also have an equity position in the Asian butcher who runs the electronic futures exchange. All-in-all, a win-win proposition all around. Even for the butcher's customers. They swear that the brains of trading monkeys taste better.
The sheer ingenuity of mankind never ceases to amaze me Duref. I have forwarded my recommendation to S&P and they have confirmed their re-rating on you. You are now officially the Monkey Market Maker. may the force of the monkey be with you. f9
At 7:56 PT on the attachment you will see an absolutely random confluence of the Overconfidence signal (brown spot in top pane) and the Bruit signal (low spot in the bottom pane). The perceptively astute monkeys who recognized and scalped that will live to see Monday. Skeptics who draw a trendline using the preceding lows will no doubt point out that it was a bounce. My rejoinder is that we despaired of ever teaching our monkeys to draw proper trendlines after reading last year's most popular thread.
Re-reading the thread vainly trying to understand where I am going with this, I noted that I failed to explain the second pane down in the immediately preceding post. It is a little gem Doaks invented for me on spec two days ago and has been testing with real money. He calls it Monkey-Annotated Conjunction/Dispersion. Swears it's totally original. Better be. I paid a bunch for it. The monkeys (the survivors, anyway) like it, too. Says it gives them a visual sense of the rhythm of the market.