Why Is The Obvious Not So Obvious?

[Ed48]

Everyone is different, but for myself the only way to avoid large losses is to place a stop as soon as a trade is entered. Accepting that, the focus is then on waiting for the best entries, especially after a pause. I find that the the alternative of using a mental stop is occasionally prone to failure due to emotions taking over. If prices move rapidly it only takes a moment of indicision for a small loss to become larger, then the temptation to manage the trade can take over and before too long the loss can be excessive. Staying in control has been mentioned very early in this thread and no matter how smart and rational we may think we are, emotions can get the better of us. A friend of mine had a stroke in 2013 at a relatively young age and although his intellect was unaffected he now experiences 'emotional lability', often getting frustrated or laughing excessively. Emotions are within us all and when trading they need to be kept in check.

Trading very small helps.

I used to think, what's the point in buying £1,000 of stock because, even if it goes up by 10%, it's only £100. Whereas if you lay down £10,000, the profit is £1,000.

But there is a flip side.

It's far easier to stay in control putting £1,000 in play than £10,000.

And as the OP said, lots of little profits add up.

 

[J Ski]

The flow chart was nice, thank you.

 

[J_Smith]

You are welcome JI - just finished off a new simple layout to keep track/trade SPY and a few stocks.

First week in 6 weeks the SPY has finished with current week lower high - will be interesting to see what next week brings!

J_S

 

[Ed48]

Here's a free chart analysis of the day:

When two things line up perfectly under the sun, it usually means something. That's right, it's a screaming BUY.

View attachment 158821

Price is still going down. Always remember the obvious.

 

[schizo]

Price is still going down. Always remember the obvious.

View attachment 159014

How is this panning out? I would like to monitor the action myself. Care sharing the symbol for this instrument?

 

[Vindago]

Day in day out, price move a fixed amount
1, 3, 5, 7, reverse will shout
2, 4, 6, 8, fake turn about
but truth be told, it is just a chance
most times will work, sometimes will not
just know you this and size the block
some stocks 1/4 some other 1/2
so don't be thick and use the KISS
then draw your box and save your socks!

 

[Ed48]

How is this panning out? I would like to monitor the action myself. Care sharing the symbol for this instrument?

This is a very basic chart but price is still going down.

https://www.lloydsbankmarketwatch.co.uk/security.cgi?csi=2448614

 

[Mysteron]

 

[Ed48]

View attachment 159471

Hi Mysteron,

Do you think the OP was leading people a bit of a merry dance with talk of an elusive "obvious", TFF, the holy grail, 500-1000% p.a. ?

Thanks
ED

 

[Mysteron]

Not so much a merry dance as any activity that stimulates the brain cells is worthwhile. Some things are obvious to me that perhaps are not obvious to others, also what I regard as obvious may or may not coincide what the OP was referring to - not being psychic I can't say. Regarding the picture, it refers to the tendency for some posters to be lured away and dissapear.