Why Is The Obvious Not So Obvious?

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

  1. Jdesey

    Jdesey

    2421 a few minutes ago.... we broke the 2430 previous support....HMMM is 2421 the new support? or do we go test 2416 from a few weeks ago.... ??????
     
    #5781     Jun 27, 2017
  2. ironchef

    ironchef

    You did a lot better than me. After about 70 pages, I still could not figure out what was obvious so I gave up reading.:(
     
    #5782     Jun 27, 2017
  3. ironchef

    ironchef

    MrScalper,

    You actually sounded a lot like nysestocks!

    What I got out of this after reading over 70 pages are:

    1. Trading is easy if you know the obvious.

    2. The obvious, whatever it is, is not obvious to us amateur mom and pop retail type.

    3. Therefore, don't follow us, we are the ones supplying $/profits to the elite traders.

    4. TA is just mumbo jumbo.

    5. Trading is like gambling, so trade to get a number of small wins instead of swinging for the fence.

    6. Trade small so to avoid the chance of wipeout.

    7. Make sure BLASH, SHABL are the majority of your trade.

    8. Entry is a lot more important than exit. Hard to profit if your entry is wrong.

    Actually, except for the obvious, everything else make a lot of sense to me.

    Regards,

    p.s., _eug_, If you don't agree or can think of anything else please chime in.
     
    #5783     Jun 27, 2017
  4. Jdesey

    Jdesey

    OH damm, I did not expect to be right this fast... we sure did break thru that 2430 and go test 2416.... HMMM let's see if we break down to 2400 and get a bounce? already ES is down 5 points from the regular session close, I will be watching over night. But today was a gift froom the trading gods... I love the short side, I always have
     
    #5784     Jun 27, 2017
  5. MrScalper

    MrScalper

    I sound like a lot of people..have even been called Mr Surf by some people :)
     
    #5785     Jun 27, 2017
  6. MrScalper

    MrScalper

    Many moons ago I posted many charts with "exact" targets hit..I actually thought that I had it cracked and started to pile up the $$ in the account..THEN..I got cocky..and instead of making around $20k in a month I wanted to make $50K..so..I started to OVERTRADE !!!

    I soon got my first introduction to my first big loss..lost over $9k on ES options over 1 weekend..this was just the start..my next loss was over double that..my third loss was not as bad..bout $8K..and then..I siad to myself..right..time to STOP

    As soon as I stopped overtrading (trying to make lots of money by opening too many positions at the same time) the small profits started again. What I discovered was that I really knew nothing about options trading and had just got a lucky streak for a good while..and when I really needed to know about adjusting positions and re-balancing the numbers I had neither the experience or the expertise!

    It was a costly..but a very enlightening experience..for it opened my mind to what is now very obvious..but which I could not for the sake of me understand beforehand..no matter how hard I tried!

    I found an old scrapbook from when one my children was a toddler..in it was a small picture of a clown..half colored in with crayons..I cut out the picture and stuck it onto my laptop next to the keyboard..and I left it there for many years..to this day..I still have that old laptop in my garage with the clown picture still stuck on to it..I plan to never have to take it out again :)
     
    #5786     Jun 27, 2017
  7. Jdesey

    Jdesey

    oh yes MrScalper... I too had to learn the same lesson. When I started to trade the E-Mini I was trading like a crack addict! sometimes as much as 20 trades per day, average was about 12 ! Blew that account up pretty fast. STUPID. now I execute 4.5 trades per day and things are much more controlled and I do not feel out of control.
     
    #5787     Jun 27, 2017
  8. _eug_

    _eug_

    What goes up must come down. Looks like I missed a pretty sweet day in the markets. But got to go up here. Kinda crazy how similar the ups and downs are to the market. I guess I started out at support... and once I got to resistance it was time to go back down again.

    Mountain.jpg
     
    #5788     Jun 27, 2017
  9. Jdesey

    Jdesey

    Dude. awesome pic... where is this?
     
    #5789     Jun 27, 2017
  10. _eug_

    _eug_

    I think we are at the bottom and will be heading up now. I am paper trading now which is kind of sad. I lost discipline earlier this month and over traded myself into a hole. Punishment is to paper trade until end of month.
     
    #5790     Jun 27, 2017