Why Is The Obvious Not So Obvious?

[Redneck]

Quote from nysestocks:

Question for those who want to answer it!

What is this chart of?

All I see are horizontal red and blue lines - I have no imagination

Red lines look to be made up of "0"
And I can't tell about the blue lines

 

[Darkhand]

i would guess that's point and figure of oil futures.

 

[steven21]

Here is my guess:
Chart 1 is somewhat range-bound.
Chart 2 is more trendy.

 

[MoneyMagnetDude]

Quote from nysestocks:

Buy Low does not mean Buying The Low point of a swing!

If I wanted to imply that then I would have said BSLASH

Another big misconception held by the majority of traders!

Price of a stock is LOW for one reason: supply is greater than demand.
Now if one buys LOW, one needs to be sure that demand for that stock will be greater than supply at some future time. If this is the "obvious" that you'd been driving at, then how does one know the demand will be greater than supply at some point in the future?

Thanks and regards

 

[MoneyMagnetDude]

Quote from nysestocks:

Capital is obvious, but what is the "edge"?

capital managment

 

[MoneyMagnetDude]

Quote from nysestocks:

NO - you must BLASH and SHABL to make money, but the obvious is what enables you to do this with very low risk, and with a potential profit many times the initial amount risked!

This is the essence of professional gambling - aka, trading!


BTW, not even Waren Buffet is aware of the obvious, but that should be obvious to everyone by now!

You use options to leverage your bet?
Could you recommend the risk/reward ratio to be used?

Thanks and regards

 

[MoneyMagnetDude]

Quote from nysestocks:

Always remember what Morpheus said,

"There is a big difference between knowing the Path, and walking the Path"

Because emotion gets in the way. So one needs to locate one's comfort zone according to what one finds in practice trading the chosen instrument. And then to come up with the parameters to control risks(loses) that can happen to one's capital.

 

[MoneyMagnetDude]

Quote from nysestocks:

We are now getting close to the fork in the road!
[/B]

One cant control the outcome of the stock direction, but one can control how much the bet is.

Thanks and regards

 

[nysestocks]

Quote from Darkhand:

i would guess that's point and figure of oil futures.

If you meant Chart No.1, then No.

And for Chart No.2, it is also a No.

 

[nysestocks]

Quote from steven21:

Here is my guess:
Chart 1 is somewhat range-bound.
Chart 2 is more trendy.

In this case, the questions were "what do you think this chart is of?"