False Trading Beliefs --- I know some, do you ?

Quote from newwurldmn:

Those massive macro funds trade direction
Long/short funds trade direction (at least on a stock specific basis)

And these are the two largest hedge fund categories.
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And how many of these hedge funds have outperformed the market on say a ten year basis? Very few.
 
Quote from trickshot:

And how many of these hedge funds have outperformed the market on say a ten year basis? Very few.
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As an "asset class" these strategies have outperformed. That is if you were to invest a dollar into some theoretical index, you would have done better. Then again, the same is true for all hedgefund strategies, which is why hedgefunds have become so much en vogue.

However, performance differs widely between managers. This holds true in all hedge fund strategies.
 
Biggest false belief is that everything will happen exactly like last time... BIG NO. Like how some people are comparing impending stock crash with 2007-2008 crash. BIG NO. Entry point and target should be similar/the same. The path between entry point and exit point may vary drastically!!!
 
Quote from trickshot:

Most of them do not even trade direction, ever heard of algotrading and statistical arbitrage?

Very few hedge funds that trade direction have outperformed the market in the long run, thats evidence that the future cannot be predicted.
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Try this similar logic: very few people carried an umbrella today, that is evidence it did not rain.

Turttle trader funds have been directionally trading the market for over 20 years and have missed maybe a few quarters, barely.

There are also serious indicatons but no prof that some people experience precognition:

http://www.priceactionlab.com/Blog/...edict-market-moves-by-seeing-into-the-future/

I would not discount that either.
 
Quote from intradaybill:

Try this similar logic: very few people carried an umbrella today, that is evidence it did not rain.

Turttle trader funds have been directionally trading the market for over 20 years and have missed maybe a few quarters, barely.

There are also serious indicatons but no prof that some people experience precognition:

http://www.priceactionlab.com/Blog/...edict-market-moves-by-seeing-into-the-future/

I would not discount that either.
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Have you ever had a dream that came true? When you sleep, your mind dissociates from your body. That is when you can travel into the future....
 
big misconception that daytrading is smarter than buy and hold, and that daytraders steal money from dumb buy and holders. in reality buy and hold is smarter than daytrading.

another myth high volume is bullish low volume is bearish. volume is very very contextual so much, its almost useless.
 
Quote from failed_trad3r:

big misconception that daytrading is smarter than buy and hold, and that daytraders steal money from dumb buy and holders. in reality buy and hold is smarter than daytrading.
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How to cure it?
 
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