Why Is The Obvious Not So Obvious?

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

  1. MrScalper

    MrScalper

    a lesson from History

    the crowd is a very dangerous thing..i recently watched some documentaries about the nazi concentration camps..and was shocked to discover how many camps they actually had across Europe..we only hear of the famous ones like Auschwitz and Belsen..but off hand..they had a few hundred camps !!!!!

    to see what otherwise normal people can do..when the wrong people are in the right place at the right time..is astonishing..it shows the crowd mentality and how it can ruin countless lives

    be very careful of the "crowd"..as the silly internet is even worse than anything that has gone before..and..always know that 99.99 % are clueless about trading and making money.. especially the ones who are "selling"
     
    #6391     Nov 22, 2017
  2. MrScalper

    MrScalper

    yes..but it pays to try and understand why..an important aspect at the moment is the amount of money that is sitting on the sidelines..most have missed out on the bull run since 2012..the dooms day sayers might have to wait a little bit longer..but..as always..we do not guess..we must look and observe..and..act accordingly
     
    #6392     Nov 22, 2017
    Newc2 likes this.
  3. ironchef

    ironchef

    The cheetah needs to follow close enough to get his prey, but too close he will overshoot, too far he cannot catch his prey.

    I cannot day trade very well using only daily charts.
     
    #6393     Nov 22, 2017
  4. Newc2

    Newc2

    i've heard this saying before

    "amateurs open the market. professional close the market"

    what does this mean?
     
    #6394     Nov 22, 2017
  5. MrScalper

    MrScalper

    you do not daytrade using only daily charts..you can use 5..10..30..60 and Daily..the 1 min can be very jittery depending on the chosen market
     
    #6395     Nov 23, 2017
  6. MrScalper

    MrScalper

    i suppose it refers to market on open orders that some people use..and i suppose the closing refers to market makers balancing their books..of course..i think those words were meant specifically for the NYSE stock market..as futures markets are a different ball game

    either way..it does not matter..do you know why?
     
    #6396     Nov 23, 2017
    Newc2 likes this.
  7. MrScalper

    MrScalper

    notice how long the tail is !!
     
    #6397     Nov 23, 2017
  8. ironchef

    ironchef

    Agree. That was my point, 1 min chart, too close too jittery, 1 day too far to catch the daily moves, so yes, 5, 10...:thumbsup:

    The analogy to cheetah hunting is actually more appropriate that I first realized: We carefully select our prey (the stock to trade), stalk our prey (put on our watch list), then at the right moment start our chase and catch (entry and exit to collect our profit).

    Bars by themselves are still not reliable signals for me but a combination of bars and patterns seemed to be working better. Once I am able to reliably see daily, weekly charts for swing trade options, I hope to graduate to 5..10..etc. for day trade options.

    Happy Thanksgiving to you.
     
    #6398     Nov 23, 2017
  9. _eug_

    _eug_

    1 and 4 hour charts are pretty key in my opinion. What goes up must come down....
     
    #6399     Nov 24, 2017
  10. ironchef

    ironchef

    That means you don't let your profit run because you know it will come down?
     
    #6400     Nov 24, 2017