Like trying to do brain surgery without having studied medicine

Quote from dottom:



Best to teach the newbie traders just enough so that they think they have an edge, but slowly bleed overtime...

If you think I am being facetious, I am, but there is truth in what I say.
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I presume in your previous 500+ posts you are doing what you're preaching - "helping" newbies bleed slowly.
 
Quote from Lobster:

Interesting points. But if you say newbies ruin the market, doesn't that just mean that they beat you to it?
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They don't beat us to it, they just prevent us from making more money. I almost never NX to get out, I'm usually stopped out or just go market. Before NX, stocks moved alot more, cause if the specialist wasn't ready to hit the bid or offer, market buys or sells would not hit the bids or offers, they would get filled in between, allowing the stock to move to where the specialists wants it to move. Specialist hate the NX order cause it takes some control out of their hands. Of course the benefits of NX are also great since you can grab shares before the specialist spread the stock.
 
Quote from Lobster:

Why do some of you attack newbies on this board who "think they can trade like a professional without doing the necessary homework"?

Don't you understand that those people are the ones that provied for our survival, and if anything we should be encouraging them to over-trade?
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Man, I'm flattered you found the example I have concocted intersting enough for the thread title :D The reason why I think only pros should do it is b/c the higher the proportion of professional/informed (as opposed to amateur/naive) investors, the quicker the price reflects true value. The closer that price is to the true value, the better the quality of the financial markets, the more the funds flow into it etc etc.
PS The occasion on which I came up with that brain surgeon example was a bit different - numerous studies show that small investors consistently suck, as they well should b/c they are like dabbling brain surgeons who keep having their patients die... Gee, I wonder why :D The context of that example was more of a public policy one.
 

Posted by
<b>calibertrader</b> in another thread.


11-14-02 06:28 PM
Re: The Markets and Mental Illness

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Quote from profitseer:

So, isn't the market sort of mentally ill? It thinks it is going up to the moon with no setbacks, then it thinks it has sunk so low it will never recover, and then it just gets in a funk where it can't get motivated to do anything.

Aren't the analysts sort of like psychoanalysts? Always telling the market what's wrong and what it needs to do to get healthy?

And then you have the support groups (chat rooms) for the markets family members who are struggling to deal with it's mental unstability.
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That's the thing, the market is trying to shakeout the last of the bubble zealots who still think we are going back to 100 point days when good news comes out.

Typical bottoms after a severe bear market just trade erratically, giving you abolutely no clue at it's intended direction. The fast money chases it up, and then the market takes it away from them by driving it down, and then it sucks the perma-bulls in to take their money away when it rallies. At some point only the smart money will be in play, and that's when we finally get a substained NORMAL bull market, 10 - 12% a year.

<h2>It's not mentally ill, it's just trying to chase the mentally ill out.</h2>
 
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