Why Is The Obvious Not So Obvious?

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

  1. sandy_s

    sandy_s

    Jeez...

    I can only say - please don’t do that gambling.

    Trading is unfortunately not only about high IQ.

    Every instrument is different in terms of movement, etc. It would literally take years of looking at the charts before one can find an edge...

    And even then...you need to be able to stand the heat of the moment - to win great. And come out with limited casualty when things are going wrong.
     
    #7841     Oct 13, 2021
  2. In my experience, a moderately high IQ is detrimental to good trading. There is a meme about this... Ah here it is. I'm personally (supposedly) at 135 or so and I was the middle guy for some time.

    [​IMG]
     
    #7842     Oct 13, 2021
  3. sandy_s

    sandy_s

    Probably you mean - high IQ or trying to use that “I” while in the action is detrimental :)

    You need to use whatever of it you have to prepare for the action. And that preparation time can be quite long....
     
    #7843     Oct 13, 2021
  4. If I understand you correctly, I think it's more like when you are smart in other areas you think that translates to the market. It can, but not in the way that you think. With a "high IQ" you have to actually dumb yourself down and stop trying to be right all the time.
     
    #7844     Oct 13, 2021
  5. sandy_s

    sandy_s

    That is exactly right....
     
    #7845     Oct 13, 2021
    nooby_mcnoob likes this.
  6. Ed48

    Ed48

    Here's the thing though. It doesn't really matter.

    Option 1
    Invest the £9k pension fund in something conservative and sensible.
    Best case scenario, 10% p.a. Perhaps doubling capital in 10 years.
    £18k pension fund in 10 years won't make much difference to standard of living in retirement.

    Option 2
    Gamble the £9k.
    Lose the lot.
    Won't make much difference to standard of living in retirement.
     
    #7846     Oct 13, 2021
  7. sandy_s

    sandy_s

    umm...trading is not gambling in the sense where outcome is based on coin toss.
     
    #7847     Oct 13, 2021
  8. Ed48

    Ed48

    The >90% trader failure rate suggests the overwhelming majority of traders do worse than random coin toss. :D
     
    #7848     Oct 13, 2021
  9. Pelt

    Pelt

    I did a random coin toss experiment on a live account HERE. Always something I wanted to do, had a good guess what the outcome would be, but just needed to see it for myself.
     
    #7849     Oct 13, 2021
  10. sandy_s

    sandy_s

    Yes - the failure rate is high...but the remaining 10% is consistently making money...

    food for thought...
     
    #7850     Oct 13, 2021