years ago a from-home trader asked me where i thought the bonds were going that he was trading - 'down' i replied which they did causing him to close the trade with a loss it was probably at that time i first thought that an essentially 'positive' person may prefer to make Buy trades rather than Sell trades, while the essentially 'negative' person would tend to Sell rather than Buy exactly what the components, criteria are for a positive/negative personality, mentality i don't know, and i don't know what method/s one might use to determine whether one is one or t'other, except that one could look at one's trading record and note whether or not there are more losing Buy or Sell trades does the positive/negative trader premise hold water ? how do you know which one you are ? or do you ? how did you correct the imbalance ? or have you ?
How do you label those who: - Long a option straddle (buy both call and put options on the same stock)? - Do hedging by pair trades (long X and short Y in the same sector)? - Or Buy the inverse ETF (e.g. FAZ, SKF, SDS) A trade is a trade. To me there is no positive or negative about it. Only profit-tive and loss-sive. The result will tell. Though most investors like to buy a stock to ride it up.
yeah that makes sense. Also, uneducated person holds all the way to the top and then all the way to the bottom and thinks stocks always go up. The educated person holds a good chunk of the entire position the whole way and either sells too early or fades the market thinking it has gone up enough and will eventually fall (in which case it doesn't). The pro knows when the bottom AND top will occur and buys and sells both using is edge. The gambler then proceeds to buy 5000 OTM calls with a strike price 50% away from the underlying and proceeds to live on the street (or post on ET........ like myself....j/k ). The way to correct this is to create your own edge and trade it mechanically to the point you have confidence and a positive expectancy in your strategy.
OP, does the positive/negative trader premise hold water ? Yes Sir â this forum is evidence⦠Countless âthe top is inâ â âthe bottom is inâ â âcanât go any higherâ â âcan't go any lowerâ â blah.. blah⦠blah.. ad nauseam posts how do you know which one you are ? or do you ? imo â you head into the trading day with âANYâ bias â at least I use to When I first started trading â I had a short bias â why; I knew price falls 2 ½ times faster than it rises â on average I had the mindset â no way price to go there I thought big of myself because I was making money while others were losing In other words â Because of a lot of STUPID SHIT âIâ thought/ believed how did you correct the imbalance ? or have you ? I have corrected it â through a lot of work on myself First I remove my head from my ass.... Then I got my mind clear I stopped listening to news, pundits, otherâs opinion, hearsay, etc... (This is not to say I ignore certain announcements/ earningâs reports â I know exactly when they are scheduled to come out â but I donât research them, nor do I formulate any opinion about them â or the possible reaction the market may have) I started trusting my eyes first, last, and always I started listening to price and allowing it to tell me where it wanted to go, (meaning I didnât allow my worthless opinion, bias, or thoughts to interfere) ⦠then I became an ardent follower of price Aside On another thread someone posted a link to a Steenbarger article â where he stating a trader must have an empty mind⦠To which I respond BSâ¦. A trader must have a clear mind â to make sound decisions and execute plans withâ¦. but never an empty mind â else that trader will most likely vapor lock at the wrong time⦠Donât get me wrong â I like some of Brettâs stuff â he just missed this one Regards RN