What's the most counter-intuitive thing you learned in trading?

[speedo]

1) The less confirmations/signals you use to enter a trade, the greater your odds for success.

2) Typically the best short op looks like a great long and the best long op looks like a great short.

I think you won the counter intuitive prize

 

[m1nt]

...bring me your finest meats and cheeses...

 

[MrScalper]

A few come to mind, which were all pretty counter-intuitive to me at some point in time:

- Winning percentages are not as important as Profit/Loss ratio, in terms of how the long-run equity curve for the strategy will look like

- Although alpha is a lot cooler to talk about, beta can be a whole lot more profitable

- Most academic finance papers were not written by / are not intended for use by industry practitioners

What was the most counter-intuitive thing you learned in trading?

Listening to other people.

 

[Mtrader]

1. Balls count more than brains.

Correct, but only valid for those who have no brains.

So female traders are better as they have bigger balls? Or has the location of the balls an influence?

 

[tommcginnis]

is this spreadsheet supposed to illustrate volatility skew with put option premia more expensive than call premia

the spreadsheet illustrates precisely what it illustrates.

(And, it blows my mind.)

 

[Overnight]

The most counter-intuitive thing I have learned in trading so far is myself. I am my own worst enemy.

 

[pinetboltz]

the spreadsheet illustrates precisely what it illustrates.

(And, it blows my mind.)

lol, the options mkt can be truly surreal

anywho, hope the hammer at today's close worked out in ur favor

 

[JSOP]

Whenever you feel you really don't want to buy, you actually have to buy. Whenever you feel you really don't want to sell, you actually have to sell.

When you feel trading is really difficult, it's actually quite easy. When you thought trading is quite easy, trading actually becomes difficult.

 

[JSOP]

As far as I'm concerned...Everything, to some extent or degree, is counter-intuitive;

Every new, and even experienced, trader...should always learn or be to: FREE YOUR MIND

There's alot of poison and random noise out there that will just lead you astray,
And I'm talking about Everyone collectively...not just the obvious garbage salesmen.

That's because we are living in the Matrix. You can feel it but you can't see it, smell it or touch it. It's EVERYWHERE and yet it's NOWHERE, forever binding you to be a slave...

 

[chartman]

1. Balls count more than brains.
2. Buy when it is going up, sell when it is going down.

Have you ever thought about who the contra party is when you are buying on price increases and selling on price decreases?