Why Is The Obvious Not So Obvious?

Quote from Trader666:

nysestocks, now that you've opened this can of worms, more of my opinion as to why the obvious is not always so obvious :eek:

I would define "trading correctly" as executing a trading plan or methodology that is more likely than not to be profitable in accordance with its elements/rules. So I see two components: having a valid concept and executing it properly.

The possibilities are:

- executing a valid concept properly
- executing a valid concept improperly
- executing an invalid concept properly
- executing an invalid concept improperly

Problem is that the market might positively or negatively reinforce any of these.

So using your financial trade to illustrate, I'd say you may or may not have traded correctly even though you made a profit. If your rationale for the trade was valid (why you made $) and you executed your trade as planned, yes. But if you bought BAC because when you pulled up the chart, a BAC commercial aired on TV and you thought that was a sign from God, no. A cousin of this would be if you bought your stock for seemingly valid reasons but it increased for other reasons, in which case I'd also say you did not trade correctly.
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BAC sure looks like it was a good buy around the $3.20 level with the $8 target!

Concepts, ideas, systems, approaches, etc, etc, will indeed pass through the mind of a trader.

However, the obvious is such that you avoid all the distractions that will "waste" your precious time!

What you say is neither wrong nor right; it is just the path that many take due to their exposure.

When one gets to a certain stage in life, and many wrong paths have been taken, then "correct" path is easier to find.

A recent discussion with a trader raised a very important topic - I will post some related details and let people see what they make of it?
 
Quote from nysestocks:

Back to business!

In order to come up with "N", lets pick a stock and see what happens?

Pick any US stock that is worth trading - lets say with an ADV of about 5 Ml shares, or greater.

Price must be at least $10 and not exceed $80

It does not matter what sector it is in!

They first step is to pick an entry point - so after someone posts the ticker with the correct requirements- as we do not need to know the name of the stock:D - those who want to partake can start posting their entry levels and stop levels - and if you have enough money you can place an AON bet if you are brave enough!

Forget about the exit for now - the whole focus is on entry and how much we are willing to lose to another trader.

Lets see who can lose the least amount of money:D
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Come on Folks - Please - someone pick a stock

After all it's only trading:)
 
Quote from Trader666:

I'd say you're far from a "dumbass Redneck" LOL.

The only thing I'd add is that trading may not be scary for YOU anymore... this may depend on personality types... but for ME my best trades have almost always been the scariest to "pull the trigger" on. Personally at least, experience hasn't diminished the scary feeling but what is has done is give me the discipline to pull that trigger no matter what... even if it feels like I'm about to be hit by a freight train :p
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I competely understand Sir

But as we all know - to be successful we must BLSH and SHBL the majority of the time:)

Take Care
 
Quote from nysestocks:

Back to business!

In order to come up with "N", lets pick a stock and see what happens?

Pick any US stock that is worth trading - lets say with an ADV of about 5 Ml shares, or greater.

Price must be at least $10 and not exceed $80

It does not matter what sector it is in!

They first step is to pick an entry point - so after someone posts the ticker with the correct requirements- as we do not need to know the name of the stock:D - those who want to partake can start posting their entry levels and stop levels - and if you have enough money you can place an AON bet if you are brave enough!

Forget about the exit for now - the whole focus is on entry and how much we are willing to lose to another trader.

Lets see who can lose the least amount of money:D
More...

ANF :

Entry 27.50
Stop 22.50

Have at'er boys.
 
I bought mine at $2.77 that day it rolled off the table :p
Quote from nysestocks:

BAC sure looks like it was a good buy around the $3.20 level with the $8 target!
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Quote from nysestocks:

Why Is The Obvious Not So Obvious?

I have read thru some of the recent and distant posts in this section, and have come to the conclusion that; the obvious is not so obvious to many!
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Because most people have never been taught to think for themselves, and for the most part are actually discouraged from doing so.
You could drop the majority of people into a barrel full of tits and they'd come up sucking on their thumb unless someone gave them directions prior to dropping them in.
 
Quote from Boib:

ANF :

Entry 27.50
Stop 22.50

Have at'er boys.
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I think it was you who turned me on to New Market Wizards page 128 beginning with the section "If trading can be taught . . ." which speaks to the topic of this thread. Also the quote on page 134: "The majority of people trade worse than a purely random trader would."
 
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