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Why Is The Obvious Not So Obvious?

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

IanMacQuaide
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Quote from The Oracle:

ok..there are a few key things to remember from this book..but that is all..as the markets do change over time and certain things also change with the changing markets

1. there is no need to follow a large number of stocks if u have ur homework done

2. global matters can affect what way a stock price will move

3. when volatility is high..meaning uncertainty in the markets..the chance of anything happening at any time is greatly increased

what u need to do is make sure u use an approach that will allow u get in and out of the market quickly..when required..and also allow u to stay in the market a bit longer..when required

how will u know?

simple..learn how to see what is actually happening..and forget about what might happen

think about what u are doing and why u are doing it

know that a winner is only a winner when the money is banked

know that a loser can very easily turn into a black hole if u think that u are able to to tell the future

in summary..know your game..and stick with what u know works..no matter what

time is your friend..use it wisely
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Some of the best words I've ever read about trading.
Thank you.

#1671 Sep 30, 2011

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IntelliBitz
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Quote from The Oracle:

Quote from IntelliBitz:

Ok, so far i understood:

1. Trading is Gambling ..yep
>Got it.

2. Place only low risk bets..hard to get this one right all of the time..but yep
>Got it.

3. Take small losses if the bet goes wrong..yep
>Got it.

4. Take small profits if the bet goes right..nope..it all depends on what is happening and a few other factors that we have already mentioned..such as ADR
>Got it.

And i know the obvious has everything to do with take low risk bets...not just placing low risk bets..for..u can place 100 low risk bets and still lose all of your money..u must also be smart..and know when to maximize your odds when you are in a winning trade
>Got it.

And the more you know the obvious the more you get it right...well..easier said than done..for..if it was as easy as all think then everyone would be making lots of money..which is not the case..the obvious is not so obvious..and that is exactly why the majority lose most..if not all..of their money when they start dabbling in the financial markets..a fool and his money are easily parted..it is best to accept that you really know nothing about the markets..and as such..will operate as required in such circumstances
>Got it.

>>Thank you, The Oracle.

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#1672 Sep 30, 2011

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Mysteron
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Quote from The Oracle:

now..as u can see from the posts..how u think is very important..and what u think about is very important in relation to what u get

before u read the next post..take note that what ever a person decides to do with his or her life is entirely up to him or her self..but..when their decisions start to affect other people..then..that is a different matter entirely..for..every person has the right and ability to think for one self

it will be interesting to see what the reactions are like..if any?

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Don't know what to make of this - a different character set perhaps - fiddling about with Internet Explorer encoding didn't reveal anything. Trying an auto translate failed to produce anything too. There are several non-printable ascii codes in the data but having looked at the data with a hex file viewer there is nothing that indicates if the data is a particular file type.

#1673 Oct 1, 2011

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Mysteron
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Quote from taoistmon:

beware this poster.. (TE/TO/NY... all these guys)

they could very well be in the process of SETTING YOU UP!

setting you up to take huge losses later on in the 'game'.

1) it is very interesting and weird that anyone would start commenting and posting on very very old threads years after everyone has stopped.

2) this thread is suppose to get ppl to think.... i do not even consider this an exercise . these guys could not have been anymore subtle (sarcasm) (did i really need to say that or did you guys figure it out ALL ON YOUR OWN. lol)
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#1674 Oct 1, 2011

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Mysteron
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Quote from The Oracle:

and now..the chart that just might be worth looking at once the brain is working

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An index chart looks much like a stock chart in that levels seem to be present. Presumably many stocks display levels occuring at similar times.

#1675 Oct 1, 2011

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Zr1Trader
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TO, do you prefer to use line charts most of the time ?

Also, do you like to use a ruler?

#1676 Oct 1, 2011

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Mysteron
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The chart is YUM on 30/09/2011.

In the vicinity of either arrow, ignoring the chart to the right of either arrow, some would think a reversal is possibly starting and try a long trade, but others would see a retracement of the downward trend and try a short trade. Its clear which trade would have worked out eventually, at least for a brief period, but which way are people biased to think - reverse trade or continuation?

#1677 Oct 1, 2011

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J Ski
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A person that missed the first move might think that
this will be a second chance to get in if they want to go long.

#1678 Oct 1, 2011

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IntelliBitz
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I can see it back at 48.5

#1679 Oct 1, 2011

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J Ski
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"which way are people biased to think - reverse trade or continuation"

#1680 Oct 2, 2011

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