Why Is The Obvious Not So Obvious?

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

  1. M4-1

    M4-1

    again..to be fair to those who are trying to better themselves..

    i have read something in the last 9 or 10 posts..that..i believe..is the closest thing to The Obvious that has been stated so far..that of course..is just my opinion..but i have good reason to believe it to be true !
     
    #7111     May 11, 2021
  2. Could this be it...?

    I think it's true. Obvious also, but maybe not obvious to everyone. And even if I or someone else knows or understands this - there's a difference between knowing the path and walking it.

    But if you understand this basic pre-requisite you could start taking measures (where some have been suggested already) to make sure you're moving in that direction.

    But if it's the obvious? I wouldn't know.

     
    Last edited: May 11, 2021
    #7112     May 11, 2021
  3. That's interesting to hear others notice it, too. The rule of 10 as it was taught to me. With heightened volatility and higher nominal prices today - it's often R20 and when volatility really picks up you can get 30 point swings, too.

    Well - if I knew with 100 % certainty that I was on the wrong side of the market and that the profit potential was considerable in the opposite direction - OBVIOUSLY - I would have reacted differently. :)

    I don't the explanation is that easy, though. Or maybe it is.

    I think the most accurate explanation for why this happened to me yesterday and similar times where it's happened is because I end up trading my P&L / past trades and don't consider each new trade with a blank slate. Attachment to a specific outcome.

    Instead of trading the market as it is - I expect the market to conform to my wishes or whims. Not gonna happen.

    It all boils down to the mental aspect of this game. After all - it is a game. And with $$$ on the line it becomes increasingly difficult. It's a catch 22 as most who seem to be attracted to this game are into it to become rich and don't just play with money that's lying around anyway.
     
    #7113     May 11, 2021
  4. M4-1

    M4-1

    i think that is just human nature..of course we all know the talk by now..lots have even written books for the gullible to buy..such as Mr Douglas and Mr Van Tharp..i say "fiddlesticks"..what i think is far more important is to read and understand "Of The Education of Children"..as..it explains exactly why there are so many "muppets" in the world today :)
     
    #7114     May 11, 2021
  5. Montaigne?

    Haven't read a trading book in ages. Trying my best to forget everything I 'learned' from them in the past.
     
    #7115     May 11, 2021
  6. M4-1

    M4-1


    "the only thing i know..is that i really know nothing"

    if you remember Donald Rumsfeld's famous saying..

    The Unknown Unknowns

    they all laughed at him and called him stupid..in reality..the "stupid" ones were the ones who did not understand what it really meant !!!?
     
    #7116     May 11, 2021
    Laissez Faire likes this.
  7. M4-1

    M4-1

    #7117     May 11, 2021
    Laissez Faire likes this.
  8. M4-1

    M4-1

    i have used this in the past and found it interesting !

    Screenshot_2021-05-11-22-14-20-268_net.metaquotes.metatrader5.png
     
    #7118     May 11, 2021
  9. Ed48

    Ed48

    Can't you be more specific? :D
     
    #7119     May 12, 2021
  10. Ed48

    Ed48

    Maybe I'm a bit thick but when I hear a lot of traders describe how they actually trade, most of it just goes over my head. So, maybe you can help me out?

    If you strip it down to its bare bones, would you say your approach to trading essentially boils down to:

    A) trying to identify tops and bottoms?
    or
    B) trying to identify turning points?
    or
    C) something else?

    Thanks :)
     
    #7120     May 12, 2021