Why Is The Obvious Not So Obvious?

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

  1. Yeah, I think it's a great post too.

    Maybe RabbitOne should start his own thread. :)
     
    #181     Mar 12, 2009
    Kruspe likes this.
  2. Ansare

    Ansare

    Now *that* I could get into. RabbitOne, you into it or you playing too much golf??
     
    #182     Mar 12, 2009
  3. I thank all of you for your kind words. Tommorrow will be the start of the thread.
     
    #183     Mar 12, 2009
  4. Ansare

    Ansare

    That's outstanding, Rabbitone. Thank you.
     
    #184     Mar 12, 2009
  5. OzMega

    OzMega

    @nysestocks

    Are you still getting what you want out of the market? It certainly appears so...
    There are really only 2 things one needs to know about trading the markets, ...and they come from unusual places ...and are not so obvious.

    "All warfare is based on deception."
    ----Sun Tzu, The Art of War

    "There are two kinds of people in the world my friend, ...those with loaded guns, ....and those who dig."
    -----Clint Eastwood

    From these two pearls of wisdom all else can be derived.

    Keep on digging nysestocks!
     
    #185     Mar 12, 2009
  6. Ha! I've learned a little and laughed a lot reading this thread. Yes, I guess I'm a fish that spends much of my time swimming in the deep end, but always hedged with a life preserver.

    I do agree with you that trading reminds me of gambling, specifically ‘Blackjack’. Counting cards for instance is primarily about money management. Depending on the count, I may go 8x my minimum or take insurance, or hit a 14 etc. But most importantly, I don’t gamble with money I cannot afford to lose. That profoundly impacts my decision making.

    I understand that we are all in this for the money. But it is THE FEAR OF LOOSING MONEY that so often interferes with our strategies and execution thereof. As was stated earlier in this thread, almost all trades will make you money if you have patience. Doubling down at a strategic point can help you make it back faster just as it can with Blackjack … but it will take an adjustment in the timeframe. Thus time vs. cost becomes a determining factor. Is there a better place for me to put my money during a given time frame, or do I truly believe this trade will eventually payoff within an acceptable time frame???

    Eventually, unless you’re Short at a bottom, the market will come to you … like the ocean’s breaking wave. And your patience and faith will be rewarded!

    And by the way, what did you mean by “OPPORTUNITY COST”?:cool:
     
    #186     Mar 12, 2009
  7. nysestocks

    nysestocks Guest

    TH, the only time you need to worry about your emotions is when you have made good money!

    Your decision to place a trade should be the same each and every time you trade - the amount you place on each trade will depend on several things, including how much money you have available to you at the time of placement!
     
    #187     Mar 12, 2009
  8. nysestocks

    nysestocks Guest

    Buy Low does not mean Buying The Low point of a swing!

    If I wanted to imply that then I would have said BSLASH

    Another big misconception held by the majority of traders!
     
    #188     Mar 12, 2009
  9. jnbadger

    jnbadger

    Can't disagree with any of that, but "good money" is very vague. It varies per person when it comes to one particular trade, as well as a years worth of trades.

    People will sabotage themselves over multiple timeframes.

    (Trying to be civil, here)
     
    #189     Mar 12, 2009
  10. nysestocks

    nysestocks Guest

    If you are stupid enough to stay in a losing trade, then you will get exactly what you deserve!
     
    #190     Mar 12, 2009