Why Is The Obvious Not So Obvious?

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

  1. Redneck

    Redneck


    All I see are horizontal red and blue lines - I have no imagination

    Red lines look to be made up of "0"
    And I can't tell about the blue lines
     
    #231     Mar 14, 2009
  2. i would guess that's point and figure of oil futures.
     
    #232     Mar 14, 2009
  3. Here is my guess:
    Chart 1 is somewhat range-bound.
    Chart 2 is more trendy.
     
    #233     Mar 14, 2009

  4. Price of a stock is LOW for one reason: supply is greater than demand.
    Now if one buys LOW, one needs to be sure that demand for that stock will be greater than supply at some future time. If this is the "obvious" that you'd been driving at, then how does one know the demand will be greater than supply at some point in the future?

    Thanks and regards
     
    #234     Mar 14, 2009
  5. capital managment
     
    #235     Mar 14, 2009
  6. You use options to leverage your bet?
    Could you recommend the risk/reward ratio to be used?

    Thanks and regards
     
    #236     Mar 14, 2009
  7. Because emotion gets in the way. So one needs to locate one's comfort zone according to what one finds in practice trading the chosen instrument. And then to come up with the parameters to control risks(loses) that can happen to one's capital.
     
    #237     Mar 14, 2009
  8. One cant control the outcome of the stock direction, but one can control how much the bet is.

    Thanks and regards
     
    #238     Mar 15, 2009
  9. nysestocks

    nysestocks Guest

    If you meant Chart No.1, then No.

    And for Chart No.2, it is also a No.
     
    #239     Mar 16, 2009
  10. nysestocks

    nysestocks Guest

    In this case, the questions were "what do you think this chart is of?"
     
    #240     Mar 16, 2009