That's a good looking chart to me. So much long opportunity and potential.
What a stupid study
- Thread starter wxytrader
- Start date
That's a good looking chart to me. So much long opportunity and potential.
ST, hes a Waver,and actuslly believes he can catch bottoms.He knows he cant,so his initial entry is a 28 percent delta..He doesn't buy all in at the end ofan ABC. His initial entry is tiny,and he basically doubles up down 12.5 percent from his first buy point. When he's wrong for another 12.5 percent, he goes in for another 33 percent and he now all in,down apx 15. He then goes to his bedroom shrine of RN Elliot and does what every Elliot Waver does...Pray...
Why are you stuck on this 28 delta? Who even talks delta when referring to stocks lol. That was a worst case scenario entry. There was a study done picking worst possible entries since the great depression and it proved that buy and hold was the most effective method. Averaging down would perform even better.
That worst case scenario is un realistic because you have as much chance at buying at the top as you do the bottom. Also, none of you has ever picked the bottom in your lives. If you had any confidence that you could recognize the bottom you wouldn't be so dependent on stop losses to manage your incompetence.
Also there is no right or wrong, just less accumulation or more accumulation.
The stop loss didn't stop a loss, it guaranteed a loss. As mentioned there is no right or wrong as you see it in terms of ego. If you are right you accumulate less shares, if you are wrong you accumulate more.
The car analogy sucks. Stop using it. The point is if you view price declines solely as a sign that your hypothesis got more profitable (and you should be averaging down) rather than a sign that maybe your hypothesis is wrong, you're in for some bad times.
I'm sorry, are you driving a (2008) Lambo?
The hypothesis isn't average down because price went against me, its load up because price went in my favor. You guys still don't get it. I WANT to accumulate as many shares as possible. Nothing worse than nailing the bottom and price takes off after only legging in once. You guys have been brainwashed on how to not make money. Do you think hedge funds use stop losses? LOL no they manipulate the price lower and lower to load up...I am loading up with them.
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Well, actually I do understand EW. And I see what you are doing, here. EW, fab ratio's, Gann and so on, are alle order to the universe kind of systems. People that like to be right are drawn in those kind of systems. It give a sense of prediction and order. This in combination with averaging down, just give a reason to never be wrong about your investing or position. Because you do not take a loss. For most people it is recipe for disaster in the markets. Good for you that you have made it work for you.
You can average down all day long on the SPY DiA IWM and QQQ and literally print free money and make free money consistently These major indexes even if they were to collapse 30 40 even 68% will always always always come back so cost averaging into these index etfs is actually a brilliant thing to do.
I just want to elaborate that I am wrong all the time in the sense that I am early...however that is by design as there is no way to determine if it will be a single or a double correction. All it means is I am legging in longer and accumulating more.