Why Is The Obvious Not So Obvious?

[M4-1]

In continuing w/the socratic method...

LR: How does one define a Low Risk opportunity? Is it decided by a given market, or is it defined by the individual?

AmO + AdV: Does AdV not imply AmO... I.e., isn't the opportunity relative to the volatility? More specifically, as long as the thing you are interested in has an adequate volatility, won't the opportunity be there?

As to the previous query, What is the relationship between Low Risk and Volatility? How does one go about figuring the "LR" part of the equation?

MES is LR as it is only 1/10 th of the ES..which is..of course..$5 risk per point instead of $50..BIG difference here as with the current volatility..a 10 point move is normal..

do not get hung up on AmO and AdV..it is sufficient to know that the MAIN thing..which is LR..is there to start with..no need to extrapolate on this!

so..now you want to know how do you perfect your entries and exits so that you can maximise on your "opportunity"..did we not already cover that ..

T= M

i can't spell it out more clearly than i have..and..as Morpheus said..

"there is a big difference between knowing..and doing"

which of course means that you can't fully understand something until you ACTUALLY do it..which..is why LR is so important..as if you get it right every time..first time..well.. let's just say you are a GENIUS

 

[M4-1]

what is apparent from the last Pelt post is that some people think that they are better off to trade a "certain" market..BUT..this can be a fatal decision..and if you are not getting anywhere with it..why keep doing the same thing..silly really!

the best symbol to trade is the one that fulfils the equation..if not..not interested!!

recently..we have seen the micro Dax and micro Euro Stoxx 50 launced..remember..they have to keep coming up with ways to get the plebs to part with their money..as has been the case throughout all of History..BUT..you can use it to your advantage..and instead of giving your money away for nothing..you can take money from others..it is soooooooo "OBVIOUS"

 

[M4-1]

ok..i can see why some find it hard to understand.. notwithstanding Morpheus..AND..this is where past experiences play a part..

OF COURSE it is not that simple and easy..if it was then every Tom..Dick and Harry would be making money..which we know is not the case..

the ES (i actually trade off the ES chart when on my PC..i can route orders from an ES chart to execute the MES..a little trick that is handy to know) is NOT THE SAME as a stock..commodity..or currency..it is the BEST MARKET to trade..WHY..because so many fools are throwing OPM around as if it is confetti..AND..as one Australian Guru once said ( even though he was speaking out his arse about Gann methods)..

"it's like picking up apples off the ground"

he was right..but he was also wrong

 

[M4-1]

 

[Pelt]

I see with Low Risk, you are referring to the value of the instrument per unit of movement. I was thinking you meant something else.

Ok, so LR, I have this covered, not a problem. I am able to trade various, volatile, liquid instruments for a very low risk relative to the funds I have access to.

If what I said above is not explained well, no worries, as rest assured I understand what was meant. No need to discuss this point further, this is understood.

so..now you want to know how do you perfect your entries and exits so that you can maximise on your "opportunity"..did we not already cover that ..

T= M

i can't spell it out more clearly than i have..and..as Morpheus said..

"there is a big difference between knowing..and doing"

^Yes, this bit above. If that is all there is, then no need to discuss this further either. This may just have to be what everyone figures out for themselves.

 

[Pelt]

^Yes, this bit above. If that is all there is, then no need to discuss this further either. This may just have to be what everyone figures out for themselves.

What I mean specifically by this... is that if it really is that simple, then it is up to each trader to figure out how to turn that simple idea into something tradeable.

 

[M4-1]

What I mean specifically by this... is that if it really is that simple, then it is up to each trader to figure out how to turn that simple idea into something tradeable.

or..just..do it

 

[The Obvious]

If most lost it back - surely the method isn't valid anyhow?

This thread is posted in the Risk Management sub-forum. Possibly for a reason.

A method that works can lose money on an individual trade because, of course, not every trade can be a winner. No method is 100%. But if you keep doing it, it will make money over time.

For it to be worth the effort, though, it has to be a superior method which beats the market by a very wide margin. Otherwise you might as well just put your money in an index tracker.

The post I found most illuminating in this thread was #853. Especially the reference to riskfreetrading's earlier post. IMHO, the order of 1-5 should be reversed if 1 is the most important. nysestocks' reply was very telling.

 

[Laissez Faire]

The post I found most illuminating in this thread was #853. Especially the reference to riskfreetrading's earlier post. IMHO, the order of 1-5 should be reversed if 1 is the most important. nysestocks' reply was very telling.

I had to go back and see and I remember that post (and the poster) from the time I actually was reading through this thread.

However, in a later post he says something to the effect of having re-read the thread and seeing how much he missed the first time around and how he had made some false assumptions.

That was kind of what I alluded to earlier as there been some guys in this thread who have claimed an eureka moment, only to later re-appear and seem just as puzzled as they once was.

 

[The Obvious]

That was kind of what I alluded to earlier as there been some guys in this thread who have claimed an eureka moment, only to later re-appear and seem just as puzzled as they once was.

This thread does that to you. And maybe it is intended by certain participants.

However, I don't think nysestocks was being disingenuous in their reply to #853. It's not like they gave a thumbs up to many posts.

You have to be a bit of a Sherlock Holmes to decipher the genuine clues from the red herrings in this thread.