Why Is The Obvious Not So Obvious?

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

  1. Mysteron

    Mysteron

    Regarding the third item, whether or not these are the exact words RN had in mind, the circumstance that will cause price to rise is when demand rate exceeds supply rate, and evidence of that should be seen in T&S. Opposite for falling price of course.
     
    #2621     Nov 13, 2011
  2. still no answer to the color question!
     
    #2622     Nov 13, 2011
  3. rossky

    rossky

    I hear color is bad. Since one can be affected by color it's better to have it all in gray. I do and it works better for me this way.

    I still use candlesticks though. A candle is "flickering" before it closes and sometimes it changes its color right before it closes. I like this setup because it's a setup.

    Otherwise, I don't understand why we speak about the color. Color means excitement which is the stress. And trading should be stress free which is 90% of what is required, right? :)
     
    #2623     Nov 13, 2011
  4. Redneck

    Redneck


    As it must ooze out every orifice, every pore, every fiber of our being – for it to be beneficial…

    I could even say it must become our default way of acting/ reacting

    And unless, and until it does, then in times of strife (trading) – one will never be able rely upon it

    We will then, unfortunately, revert back to our old ways, our old habits, our old muscle memory… and our old results

    --------------------------------------------
    Side Note

    Anyone ever be watching the mkt, place a trade, trade start losing..., and then instead of exiting - you sit there like a deer in the headlights frozen

    Its even worse when running thru your mind is the thought - I should exit

    But you don't, and instead continue sitting there watching the red grow - until the pain forces you to exit

    Not only have you lost money..., but you've ingrained a very harmful lesson into you subconscious muscle memory

    And next time it'll be repeated, and the next.., and the next... Until you do the work to break it...

    Then you must do the work to build the correct default action

    Where you simply exit a loser

    With out hesitation, thinking, any thing... It just happens - as does breathing or blinking


    Of course there's also the not injecting one's opinion... and not getting an ego to contend with, along with discipline, patience.., and some others....

    I get it....
    -----------------------------------------

    Apologies for yesterday…

    I sometime suffer from not being able to chill out – as do those around me – unfortunately – when I can’t

    RN
     
    #2624     Nov 13, 2011
  5. Mysteron

    Mysteron

    On a price bar, if the open price = close price then the bar has no net change so whatever colour is assigned by a chart is meaningless.

    If the time sampling of the chart could be shifted slightely, the open and close prices would take on slightely different values and those bars that originally had the open and close prices close together may possibly change colour.

    So the colour of any bar with the open price very near the close price is also of no consequence.

    Perhaps it would be best to have all bars display the same colour to avoid the distraction of colour. That would be OK for OHLC bars rather than candles, but with solid candles there would be no distiction between open and close.

    A while back TO referred to RGB, possibly hinting that a third colour blue should be used. At the time I thought that bars with the open very near the close could be considered as the third colour and I set up an indicator below the price chart to flag those bars, as an experiment.
     
    #2625     Nov 13, 2011
  6. rossky

    rossky

    Colorless!

    ---
    Otherwise. If the color is being referred to P&L then we must learn to enjoy, condition ourselves to see BIG or much larger number in Green compared to the number that appear in Red.

    One big win will cover many small loses. It is an extremely hard thing to do without a predefined profit targets.

    One thing is being paralyzed by fear and helplessly watch it go deep against you in the red until your pain wakes you up! That's definitely in the past - zero tolerance now to this type of behavior! And I'm going through an exercise that will cure that bad habit for good!

    Another thing is to let a winner run. For some wrong reasons I used to believe that many small wins will be able to cover a large loss. So wrong, and it's so obvious! Maybe one day, somewhere deep in my psyche, I will discover the root of this problem. For now, predefined profit target does the job.
     
    #2626     Nov 13, 2011
  7. xburbx

    xburbx

    I think to is talking about the poem with white between colors? I'm not sure which direct color question it is asking but white in the poem I think is what is between the bid and ask. My understanding is that the white is the market makers and specialists usually showing up with those 3 or 4 digit prices.

     
    #2627     Nov 13, 2011
  8. rossky

    rossky

    Intel Inside. :D
     
    #2628     Nov 13, 2011
  9. gktk

    gktk

    R = result (we still talking T&S here?)
     
    #2629     Nov 15, 2011
  10. J Ski

    J Ski

    I'm still reading previous posts to catch up.
    Canceled the TV satellite.
    Pretty much disconnected.
     
    #2630     Nov 15, 2011