Why Is The Obvious Not So Obvious?

Quote from The Oracle:

do u mean the ability to do some sort of computer programing in order to make money trading..if so..then a big NO is the answer

all u need is access to a few crystal clear lcd screens..one good eye..and one simple brain:)
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TO,

q1:
how many is afew???
what are the different charts we need to see? diff time frame?
what about if we are do position/swing trade.....can I run with just 1 screen??

q2: could you explain the purpose of one good eye (I assume u meant a pair)?? what are we trying to see...and what not to see?

q3: could you explian in detail the function of the simple brain?


regards,

poland
 
TO,

thanks for the lesson. I have some more questions below.


Quote from The Oracle:

simple..if u think the market is going to go up..then go short..and if u think the market is going to go down..go long:D
do this until u start to lose..then u can go back to your original way of thinking:)

>>> i guess i undertsand you meaning....be on the opp side of the majority....i guess all the mass media will condition our thinking to the majority.

it is very easy PL..reward is always related to risk..learn how to master the risk aspect of trading and the reward will soon follow

>>>I tend to overtrade....because I am always worried that I will miss the boat....because i trade a slow stock...if I miss one ride...the next will come in a few months



however..let us not forget that some people are new to this game..and..one must also understand that risk control alone is not enough to make u money..for..u must have your double zero..u must have a simple method that will make u money over a set number of trades..and..the number of trades required will depend on the market u choose to trade

>>> mind if I ask what is double zero??
>>> can you share an example of a simple method
>>> how do we decide what market to trade....my current thought is that I remain in a small pond...(slow stock)...hence I won't get eaten by sharks...but it also meant no BIG $$$...


take fx for instant..if u had decided to take up trading the eurusd recently..maybe due to some sexy advertising by those who sell information to the public:D ..u might just have lost most of your hard earned money in a few weeks..or even days

>>> probably because of my job( trader for physical gooods) I do not believe in such stuff...hence I have never attended any courses...
unless it is your good friend or family...or your good luck to find a good mentor in cyberspace...


and then..u will turn around and say to someone..i should have not listened to those fools..with their proven profit methods

u should never have listened to them..in fact..u should never listen to anyone who tells you they know what way the market will go next..for..anyone who speaks this way..is showing that they know absolutely nothing about trading for real and easy profits

u do not have to know what way the market MIGHT go in order to make money trading..all u need to know is that when it starts to move..form a certain level..then your odds of making money are far greater than if it moved from some other level..and this is where u enter for low risk trade..and..how much u make on that


>>> do you mind giving a grapical example of your above explaination?
if I loook at the 1yr chart for S&P...I would bet that it will be higher than the current level in 3months time?? what do you think...




trade..well..all u can do is be very attentive and be ready to get the hell out with your easy money when it is there right in front of your eyes:)
i wonder how many are willing to do what is required in order to learn how to make easy money..as we already know that everyone wants easy money..but do not like to hear the word WORK brought into the equation:D

how to survive

well..it depends on what market u have decided to trade..and what idiots you have listened to already:D

>>>what market do you recommend ??

TO
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TO,

can I safely say highly liquid + highly volatile stocks



Quote from The Oracle:


volume is of course important..but can be ignored if the correct stocks are traded..highly liquid stocks

if u look at too many things u will not see TIME fly by:D [/B]
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Quote from Mysteron:

30c90zo.png


The chart is YUM on 30/09/2011.

In the vicinity of either arrow, ignoring the chart to the right of either arrow, some would think a reversal is possibly starting and try a long trade, but others would see a retracement of the downward trend and try a short trade. Its clear which trade would have worked out eventually, at least for a brief period, but which way are people biased to think - reverse trade or continuation?
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some would say it would have had to get a tad above 50 before u go long..where is ur box:D
 
Quote from Mysteron:

16gcv8w.png


An index chart looks much like a stock chart in that levels seem to be present. Presumably many stocks display levels occuring at similar times.
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someone once tried to explain to me all about the s&p futures..and how the futures are used to hedge big pending orders..and...and...and...:confused:

the intricate workings of the financial markets are very complicated..ranging from program trading to options trading on futures and individual stocks..and..when pending orders are in the hundreds of millions there are some nice sweet commissions to be racked up!!!

how is the cash index calculated?

http://www.cftech.com/BrainBank/FINANCE/SandPIndexCalc.html

so..the best thing to do..unless u are directly involved in that part of the game..is to forget about the complicated intricacies..entirely..and just concentrate on what u can expect to achieve..in the next short time..based on what u know about how people act and react

there is no need to be an expert in this game..at all..even though many seem to think they have achieved that acclaim

oh..just in case..there is really only one real expert..and he goes by the name of...

The Expert...aka...TE :D
 
Quote from Mysteron:

"...the age of the daytrader is over..."

Can't agree with that but the article makes sense (or is that shite TO?):

http://www.pbs.org/wgbh/nova/body/adler-stocks.html
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i scanned the article and then closed it..u were right..it is shite:D

trading is gambling..full stop..so if u are going to gamble u better discover how to put the odds in ur favor..else..u might just end up one sorry bastard

as we keep saying..it is so simple a child can do it..in fact..a child WILL do it better than most adults who try..as a child will do exactly what u tell him/her..providing the reward is there at the end:D

let's take a step back

if u were given $100K trading capital tomorrow..and u now have $400K buying power..what is ur plan and how will u execute it?

u can lay out the plan any way u want..once it is easily understood:)
 
a guess at that question

- i would treat that 100k like a gambling business. i would start with a business plan based on things relative to a trade (transaction) that put the probability of having a net positive at the end of a given period over X amount of trades. i would put that plan into action and then after a certain amount of trades, i would look for correlations and common factors that caused me to lose/gain money. i would avoid the losing characteristics and try to emphasize the winning ones that make the transactions in my gambling business net positive. losing is a cost of business just like normal overhead expenses and the key is to make sure that you never let your overhead get over extended. i know this seems obvious to most, but that is how i would approach the given scenario posted. get rid of the things holding my gambling business back and push efforts towards things making my business net positive.

one of the deadly things in running a business is not realizing what things are hurting your business even though they are very clear in hindsight after the money is spent. in trading, there are so many factors that are hurting the cash flow that most people dont have a single piece of the puzzle in place to focus that as the core of the thing that generates cash flow. i am not preaching or even stating that i know what i am talking about as i am still working on becoming a positive gambler but i have eliminated a ton of things since i started. i might not be close to getting the answer but this is how i view things after several years of seeing a lot of things in this.
 
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