A post every trader should read, especially new traders.

[tomorton]

No trader should have still been long on Black Monday 1987, nor through the worst days of the 1929 crash.

 

[Visaria]

You are wrong.
Of course 1987 crash was the end of the world, not 2000 tech bubble bursting lol.
In 1987, there were no way to exit. Your money and account were frozen, brokers didn't take orders. Too many new comers, buying market after 5 years of non-stop bull market.
Massive suicides, same story in 1929.

CM

What is a massive suicide lol? Do you mean mass suicides? That's bs as is the crap about people jumping out of windows and shooting their brokers. Show me a newspaper link to such a story.

 

[qxr1011]

Then they didn't understand long term investing.

True.

But the long term investing is not easier, if not harder, than the short term trading.

The working method is required for investing as well as for trading. And there is no substitution for the investing method, not the article by some guru, nor the smart proverbs, nor the honest suggestions..

Unfortunately most of the people were not told that, and the finance professionals who served the public were not told that ether... So the blind ones guide the blind ones...

For our benefit

 

[beerntrading]

Do your homework.

Well, I did say fewer people tell their horror stories, not none. And two of the (three) people you cite were actually winners on black Monday...and the very people on whom I indirectly suggested there is an excess of discourse. Also, I explicitly noted that was an ancillary point to my post ("I digress"--which, as typically used means I had more to say but withheld it for the sake of staying on topic).

 

[ironchef]

Then they didn't understand long term investing.

They do understand long term investing: Long term cash/CD investors for 8 years since 2009 and will be long term equity investors for the next 8 years.

 

[tommcginnis]

Is he really so oblivious to believe people are offended by the suggestion that markets drop, and not by his profound condescension?

He's received scowls when he observes a need for caution. (Or, "having an eye on the exit" or however else you frame it.) Much like our trading platforms, if the only graph you have up is shorter-term, then longer-term market moves are, literally, "inconceivable."

{I hope you heard Princess Bride in there... }

It just gets really old. And yet you know: if you don't try to caution people, you'll never forgive yourself.

 

[TheRumpledOne]

Bitcoins are tulips.