85% of traders dont understand trading.

Quote from fearless9:

It is the second mouse who gets the cheese.

regards
f9
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The second mouse knows that the probability of being clobbered whilst he is eating the cheese is very low, therefore the risk is justified.

He lives in a cheese factory populated by mice so he is never short of opportunity, or first mice for that matter.

And so, his rules are simple.
"Let the first mouse spring the trap and then he (the second mouse) will get the cheese only when he thinks that the coast is clear"

eating cheese is all about ....probabilities.

regards
f9
 
Quote from fearless9:

The second mouse knows that the probability of being clobbered whilst he is eating the cheese is very low, therefore the risk is justified.

He lives in a cheese factory populated by mice so he is never short of opportunity, or first mice for that matter.

And so, his rules are simple.
"Let the first mouse spring the trap and then he (the second mouse) will get the cheese only when he thinks that the coast is clear"

eating cheese is all about ....probabilities.

regards
f9
More...

:p !!!!
 
Mind you if 85% of traders do not understand trading and 95% of traders lose their money, then obviously 10% of the traders who DO understand trading, still lose their money.

Does this mean that a little knowledge is a dangerous thing.

Just a thought.

regards
f9
 
traders most often throw out the plan when the emotions of loosing start taking over.

so its not really that they dont understand trading as much as they dont understand themselves.

mb
 
Quote from MarkBrown:

traders most often throw out the plan when the emotions of loosing start taking over.

so its not really that they dont understand trading as much as they dont understand themselves.

mb
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golly, now we are finally getting somewhere.
Who ever would have thought that it just might be a matter of fitting self knowledge and trading knowledge into a seamless pattern.

regards
f9
 
Quote from athlonmank8:


So here's what traders SHOULD be doing. They should be analyzing areas where those buyers and sellers do and dont want the product. Where's the demand? Where's the supply? Where isn't there going to be supply or where isn't there going to be demand? These factors all move price and velocity of price.

On a side not this is purely technical. Fundamental is a whole different topic.
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Funny, but supply and demand sure sounds fundamental
 
Different people interpret a chart and use TA differently so which TA we are talking about? Two traders use TA on the same stock and one loses and the other one wins. So is TA bad or good?
Another point:
A trader loses for 2 years and then learns from his mistakes and makes 5 years of profitable trades and on the sixth year his account gets belly up. Was he a successful trader? It depends when they ask you. If they ask you this Q in his 4th year, the answer is yes but in the last year the answer maybe is no.
And back on TA. If you believe TA has no worth, you should have an extremely good knowledge on that and then disregard it. If you have not mastered TA, you can not have an opinion on it.
 
Great thread and I couldn't agree more with Dustin's post.

the probabilities. It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong.

just my 2 cents...

Quote from Dustin:

You can't talk about indicators without talking about the risk management that goes with it.

I rely on one indicator even though I know it's only right about half the time. How to do this successfully? When I'm right I make about 1.6x then when I'm wrong. Pretty simple really.
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