Quote from mrnate22:
Jack,
I'm still young trying to learn the market..
Actually, as I have said before and you missed, you are learning failure.
Take a third party example:
surf and Edison.
surf learned failure by looking at ONLY people who could not trade technically. Look up mean reversion to see how it takes half of a trade and exits early. Surf learned from mean rversion and working for Conners that TA does not work. Conners invented a test for stocks that are not trending. The test works. It is also true that non trending stocks cannot be traded to make a high money velocity.
Edison invented sleeping for short periods and working in btween to reach a goal. He woke up. Waking up is a big thing.
Edison stuck with DC current all his life. He used DC to invent the light bulb. Edison worked on materials analysis. He found a material (tungsten) which could be turned on and off a lot of times. He found this out after he found out tungsten could be left on while he slept.
Edison proved a postive result.
surf is working, at his own volition, to prove a negative. He now states that negative as a fact. so all that is left for him to do is find out what you are finding out.
you are learning failure. Surf has learned failure and he believes he has succeeded in failing.
Neither of you can sort stocks to trade.
trading sorted stocks makes a lot of money since all sorted stocks are capable of making money after the beginning occurs and until the end occurs.
beginning and end of what? Ask Conners. Conners has a test for non trending stocks that works. when Conners test fails, then the stock is beginning to make money. When Conners test passes, then the stock has finished making money.
surf has not known what Conners did for 20 years and he believes he doesn't know what Conners did.
I do everthing backwards. I watch stocks that trend all of the time and have huge swings all of the time. I watch the leading indicator of price. Why? I am lazy and can make a lot of money in a short time.
I look at 7000 stocks and in 100milliseconds I sort them to the best 100 stocks and then sort them according to the events for making money.
This is difficult. I click on a filter name on a list of filters. then I ask the filter to opoerate and then I ask for the list of results. Then I look at the columns to find the buy date and sell date of the best stocks.
I buy late and sell early.
I have to do 7 trades with my compounding capital to double the capital. This takes 40 days and I do the next doubling of the original capital in less time since I have twice the capital.
So I ask you to go through a drill (ohoh that evil word for the learning process).
I wanted you to learn that your knowledge and skills are worthless.
If you learned that you would have less to have to ignore and build a mental barrier in front of.
But you did your thing like surf is doing for 20 years.
He said what you do doesn't work and he has never seen anyone ever do anyhing that works, technically speaking (Conners didn't count apparently).
Ask EMG about it. He watches TV sitcoms and explains them to others for entertainment of the others.
Here is the significance of the wash trade:
Wash trades cannot be done unless you enter a trend late.
BUT, if you do go into a trade at the wrong time, there is always a way out of the trade. The way out is to always be able to recognize an error (an error is different than losing money on a trade) and take immediate action (get sidelined).
I wanted you to learn to scribble on paper and use a Ruby eraser so you would always enter late. Children love doing this. They can watch bars innocently and see a trend has started. Then they have to erase furoiusly to gain permission to take a trade. Finally they wait and wait until the price is again the same as the ray they drew across the chart horizontally. They are learning that no one has to lose money. They work in groups. scream scream.
So after that, they switch to the leading indicator of Price and really have fun.
The Behavioral Finance web site explains all in a brief article on the home page: "BF or BS". BF explains in short order the cure surf needs to take. It applies to you too but not yet. first you have to admit that you are learning failure. Go to AA and listen for a few sessions. Or go to Alanon if you are not an alcoholic as yet. They met at the same place at different times.
Surf is the BS part. He cannot understand Nodoji is a prima facia example of what he has never seen in 20 years. think about it; thsi guy you respond to can't understand Nodoji is the real thing. She has even told you to go to a 12 step program and posted the home page for you.
If anything surf's wife needs to go to a 12 step program; she has been hoodwinked or worse. It would be the Alanon of Bullshitter's annonomous.
Bye bye.
