"The market goes where it can f*ck the most people"

[Buy1Sell2]

Quote from FaderTrader:

The pros can shoot and miss and can average down a loser with big size to create a winner.

This is incredibly accurate and is one of the top ten posts on ET since I have been here.

 

[whitster]

institutions TEND to buy one weakness and sell on strength

individual traders TEND to buy on strength and sell on weakness

institutions TEND to have a long term time frame

individual traders TEND to have a short term time frame

individual INVESTORS tend to dollar cost average which means they buy more shares on weakness, and less shares on strength.

historically speaking, there is no 20 yr period in the history of the stock market where the latter strategy would not have made a decent return

the "market", which we often anthropomorphize is the just the sum total of all actions of short term time frame participants, long term time frame participants, hedgers, chasers, faders, etc.

 

[Bitstream]

referrin' to da title of this thread, it is obvious that da winners need plenty of losers otherwise they wudn't have had da chance of compundin' their rock solid strategy and multiply their returns. if it wasn't like that nobody wud have a go at it, innit[?]...losers won't be able to use large size for long; will have to reduce their bets and still be part of that pool feedin' da shark. i always try to follow size movin' in da mkt to understand better da mechanics of big traders strategies and for what i can see those who [seem to] enter with substantial size usually get da direction right, whatever da levels they get in'n'out, while those 1-3lotters keep gettin' punished on a reg basis..it's all in da ladder or L1.....no wonder tho, i don't think any1 with a winnin' strategy wud, in his right mind, keep it small just for da sake of it...

 

[FaderTrader]

Quote from Bitstream:

referrin' to da title of this thread, it is obvious that da winners need plenty of losers otherwise they wudn't have had da chance of compundin' their rock solid strategy and multiply their returns. if it wasn't like that nobody wud have a go at it, innit[?]...losers won't be able to use large size for long; will have to reduce their bets and still be part of that pool feedin' da shark. i always try to follow size movin' in da mkt to understand better da mechanics of big traders strategies and for what i can see those who [seem to] enter with substantial size usually get da direction right, whatever da levels they get in'n'out, while those 1-3lotters keep gettin' punished on a reg basis..it's all in da ladder or L1.....no wonder tho, i don't think any1 with a winnin' strategy wud, in his right mind, keep it small just for da sake of it...

Your writing style pisses me off. And I don't think I'm alone. Why persist with it?

 

[Bitstream]

Quote from FaderTrader:

Your writing style pisses me off. And I don't think I'm alone. Why persist with it?

after changin' --'n'-- to --and-- i thot u all wud comprehend, i only avoid da letter 'g' at da end of gerundives, that's it...if u can't understand that u have deep issues.

 

[mrbrint]

ahhh come on ali g kicks ass........hahaha

 

[dandxg]

Quote from FaderTrader:

Your writing style pisses me off. And I don't think I'm alone. Why persist with it?

Ebonics and trading mixed together. I picture Bitstream as some rastafari dude trading in Jamaica, am I right?

 

[FaderTrader]

He doesn't trade, it's obvious. Anyone who trades knows how challenging it is and doesn't put that kind of effort into trivializing it.

So basically, I don't like having my intelligence insulted by being given advice from someone who has no basis for understanding what he's talking about.

 

[Bitstream]

Quote from FaderTrader:

He doesn't trade, it's obvious. Anyone who trades knows how challenging it is and doesn't put that kind of effort into trivializing it.

sure, wha'eva' u say.

 

[murray t turtle]

Quote from spike500:

Keynes was a famous economist, but for as far as i know not a good trader.
So his quote has the same value as a quote from a doctor in medicines on the the way a nuclear power plant should be built.
On top of that the quote is more than 75 years old, markets have changed enormously since 1930. You cannot use his quote anymore, things have changed too much.
Another fine example of these kind of statements is the statement from Microsoft only a few decades ago that a computer would never need more than 640 Kb RAM.

The market NEVER cares about the position of a trader. If the trader is hurt, it is because he runs with the mass. And the mass runs always behind the facts (like an MA).
The smart money takes position and tells afterwards to the mass they have to reverse their positions. Smart money needs the mass to make money, because the mass makes the trend.

=============
Exactly right & most
profitable traders/investors do not have the goal of causing pain;
its a plan to make profits. Some do seem to enjoy hurting themselves

And its assuradly not the fault of the moving averages;
unless you think every one who covered shorts & bought around SPY /ES late last week / 200 dma was dumb money . I do not Good points as usual ,Spike500