If you want to trade stocks then be prepared to gamble.
Stock trading is the same as gambling on which cockroach will make you the most money as it scurries along the floor.
That's not to say you can't make money gambling, you can!
But gambling has many risks: The majority lose, the majority lose lots of money, Some make a small amount of money, 1% of gamblers are rich from gambling.
Now cockroaches come in all shapes and sizes.
If you want odds in your favour, only trade the largest cockroaches, they have the best chance of consistently winning.
But like gambling in its purest form, outsiders can hit the jackpot with spectacular returns, but these sorts of punts are irregular and infrequent, most outsiders lose.
The most succesful gamblers have a system, a mathmatical system where they know the odds beforehand, they have data on the field of past performance of previous cockroach races and have calculated the probabilities.
If a cockroach race is in action, those with a tailwind or sloping board will have the best odds, eg how strong is your sector and how tired is it? (overbought/underbought)
One of the problems with gamblers though, is most believe in bs, ie if the media are clamouring about some youbeaut stock, most likely it's bs and that cockroach is buggered atm.
The media will pump because (a) They are paid to pump out whatever comes into their head and expect it to garner most clicks (b) Media are biased (c) Media is deceptive (d) media just talking nonsense, don't know what they're talking about.
So, many gamblers trade on instinct, emotions, excitement, fantasy dreams, delusion, Hope, clueless.
Humans have a problems, we are very much Dunning Kruger, we have over estimation of our skills, we don't know what we don't know.
Dunning Kruger affects nearly all novice gambler traders.
It also affects uneducated gambler traders.
What's the solution?
Enjoy your gambling.
Treat it seriously but fun like you are accountable to a good boss who is watching you.
Educate yourself, never stop reading and inquiring and plotting your present or next system.
Don't kick yourself when you lose, unless that is, you were behaving like an idiot.
Remember, the smaller and younger the cockroach, the less chance it has of winning or surviving, but every now and again there will be a pleasant short term surprise.
Cockroaches which are a little bit like pack horses and team up,(think ETF's, Indexes, sectors) are less skitterish and easier to anticipate than young loners.
Stock trading is the same as gambling on which cockroach will make you the most money as it scurries along the floor.
That's not to say you can't make money gambling, you can!
But gambling has many risks: The majority lose, the majority lose lots of money, Some make a small amount of money, 1% of gamblers are rich from gambling.
Now cockroaches come in all shapes and sizes.
If you want odds in your favour, only trade the largest cockroaches, they have the best chance of consistently winning.
But like gambling in its purest form, outsiders can hit the jackpot with spectacular returns, but these sorts of punts are irregular and infrequent, most outsiders lose.
The most succesful gamblers have a system, a mathmatical system where they know the odds beforehand, they have data on the field of past performance of previous cockroach races and have calculated the probabilities.
If a cockroach race is in action, those with a tailwind or sloping board will have the best odds, eg how strong is your sector and how tired is it? (overbought/underbought)
One of the problems with gamblers though, is most believe in bs, ie if the media are clamouring about some youbeaut stock, most likely it's bs and that cockroach is buggered atm.
The media will pump because (a) They are paid to pump out whatever comes into their head and expect it to garner most clicks (b) Media are biased (c) Media is deceptive (d) media just talking nonsense, don't know what they're talking about.
So, many gamblers trade on instinct, emotions, excitement, fantasy dreams, delusion, Hope, clueless.
Humans have a problems, we are very much Dunning Kruger, we have over estimation of our skills, we don't know what we don't know.
Dunning Kruger affects nearly all novice gambler traders.
It also affects uneducated gambler traders.
What's the solution?
Enjoy your gambling.
Treat it seriously but fun like you are accountable to a good boss who is watching you.
Educate yourself, never stop reading and inquiring and plotting your present or next system.
Don't kick yourself when you lose, unless that is, you were behaving like an idiot.
Remember, the smaller and younger the cockroach, the less chance it has of winning or surviving, but every now and again there will be a pleasant short term surprise.
Cockroaches which are a little bit like pack horses and team up,(think ETF's, Indexes, sectors) are less skitterish and easier to anticipate than young loners.
