Why Is The Obvious Not So Obvious?

Discussion in 'Risk Management' started by nysestocks, Jan 25, 2009.

  1. pair.
    If you stated your negative opinion about this, why don't you enlighten us on what’s required to trade profitably?
    It's easy to walk and puke around...
    amp.

     
    #1161     Jul 15, 2010
  2. Regarding #8: In order to do this wouldn't you need to know the future movement of the index futures contract? For instance you may see the futures index begin to trend up and you could say IBM will probably follow. But as soon as you buy IBM the futures may turn down, and so may IBM.
     
    #1162     Jul 15, 2010
  3. RedDuke

    RedDuke

    I just want to address one the points.

    2. I do not trade stocks, but few professional traders told me is that while in theory you should get NBBO, but is does not happen in reality. Too many games can be played with stocks by bots.

    My main point is that trading liquid index futures is in no way more risky than trading stocks.

    I was very surprised, when I saw you arguing that futures are more dangerous, after having many trading years under your belt.

    Regards,
    redduke
     
    #1163     Jul 16, 2010
  4. get better returns:D what a joke:D :D

    the US Stock Market is what it is, and, there will be NO significant change in most US Pension Fund strategies, for OBVIOUS reasons:D

    who gives a shit about hedgey fundy managers and the "products" they offer:D

    E vs. B

    theoretical nonsense..really..u fukin dim wit:p

    Why don't you give JH a shout, you make a nice PAIR :p

    Equities

    CalPERS is one of the largest institutional investors in both the U.S. and international stock markets. A large portion of our money invested in stocks is "passively managed." That means that we don't actively try to time the market. We are long-term investors - we buy and hold:D. Our belief is that the market is relatively efficient and that it is difficult to add value with active management. We do maintain some active equity management in areas where there appears to be the potential for managers to add value. Active strategies are managed both externally and internally.


    [​IMG]
     
    #1164     Jul 17, 2010
  5. RE, no prob:)

    Let me clarify, as clarification is always required for most subjects.

    Trading Index Ftrs is very risky for those who are not experienced in the markets. The "fluff" that is thrown out there by brokers, so called "market educators", and their spin offs, well, is pure and utter lies.

    The novice trader enters the Frts markets thinking that it is possible to make money with tight stops, and, they think this without even understanding the very basis requirements for reading charts effectively:eek:

    It is called a "mugs game", and I know, for I was once a "mug", so much so, that I thought I knew it all, and, that I was a great little fellow, able to make money trading any Ftrs market I decided to trade:cool:

    Then, I had the privilege of meeting some very experienced traders, some having made millions trading their OWN accounts, and guess what, my eyes were really opened to what is and what is not possible in the markets.

    As risk is directly proportional to reward, then, it is OBVIOUS that the lesser the risk the lesser the reward. Introduce leverage and this equation now changes, so, a trader best KNOW what is EXACTLY required in order to stay in the game, for, it is easy think that one is immune from violent and sudden shocks, but, it only takes one or two mild shocks to knock a trader out of the Ftrs game if they are not in FULL control.

    For an experienced daytrader, with many years of live trading under the belt, in that case, then YES, Ftrs trading can be equal in risk to equity trading, but, I am of the opinion, after trading both Ftrs and Equities, for many years, that, for the beginner who is learning, and keep in mind that this is the only type of person that I am interested in helping out, where possible, then, daytrading US Stocks is far less risky than daytrading Index Ftrs.

    It allows the person learn the required skills, by keeping the risk to a realistic minimum, which is a prerequisite to success for mastering the art of gambling in the big bad world of the financial markets.

    TE
     
    #1165     Jul 17, 2010
  6. Placebo

    Placebo

    Well said TE.
     
    #1166     Jul 17, 2010
  7. Well PO, the only thing I really know is that I know nothing!

    Many go around spouting their "knowledge" of the markets, and how they work, when, the reality is such, that, in order to make money trading, you need to know fuk all about the markets, really, and the less you know, the better:)

    The art of extracting money from idiots, is, well, a simple art, and, all it requires is some common sense thinking and some basic skills in relation to data compilation and interpretation.

    Most seem to forget that the internet can be The Master Key, as, it is possible to find the required relevant information in a very short time, if one but knows how to LOOK:)

    For instance, this document can be found and downloaded in about 5 mins, and I would say even 2 mins if you are any way internet savvy.

    [​IMG]

    Is this information of any real value?

    Well, as usual, that depends on who is reading it:D

    TE
     
    #1167     Jul 17, 2010
  8. exaltedangel09

    exaltedangel09 Guest

    after reading 119 pages of this shit i have discovered nothing that I didn't know before.
    thanks.. the obvious is really not that obvious.. nysestocks is a genius.
     
    #1168     Jul 18, 2010
  9. I have learned the phrase "Sweet Fuk All" !!!
    I use it on a daily basis now.
     
    #1169     Jul 19, 2010
  10. Mysteron

    Mysteron

    Failing to discover or understand is typical, but to discover nothing, is truly an achievement.

    When you come to the realisation that you know nothing, it is at that point that you start to learn.

    The next step it to read the 240 pages of 'If you want to fail as a trader, study TA'.

    Have fun :cool:
     
    #1170     Jul 19, 2010