Why Is The Obvious Not So Obvious?

[ironchef]

I know other people, like me, who've blown accounts and many others who've carried on trading for years with very little success. We would all have been vastly better off just doing buy & hold passive investing.

90/10 is not a bad approach to managing a portfolio. 90% in buy and hold, 10% trading. The problem is easier said than done.

For folks like me (lots on ET by the way), we have too much free time and this is much more interesting than playing word puzzles or going to Las Vegas.

Regards,

 

[Ed48]

This poor guy certainly isn't aware of the obvious.

http://www.psychforums.com/gambling-addiction/topic108461-80.html#p2044874

 

[smallStops]

This poor guy certainly isn't aware of the obvious.

http://www.psychforums.com/gambling-addiction/topic108461-80.html#p2044874

Very clearly, this guy, after 26 years of "trading", has started to learn that there is a very fine line between trading and gambling. It also seems to me that, had he been advised at some point to take up meditation so as to find out the root cause(s) of his gambling tendencies, he'd have denigrated such advise with "it's all about the edge", etc; when once the basics mechanics of trading are known - 26 years time is ample time to acquire these - it's all about what's between the two ears and the major part between the two ears are linked to the subconscious.

 

[MrScalper]

This poor guy certainly isn't aware of the obvious.

http://www.psychforums.com/gambling-addiction/topic108461-80.html#p2044874

Most are like him..some on a smaller scale.

Trading is not gambling..with gambling your bet is fixed.. you can not lose more than your bet..with trading.. especially with a leveraged account..you can lose all of your money..if you are silly enough!

This is all well known stuff..so what can one do to prevent this happening..well..the first thing is risk control..again well known stuff..so what is next!

After risk control..one must gain experiences with losing..and winning..without BOTH..it will never sink in..meaning..there are as many ways to lose and make money as there are traders..and one of the biggest mistakes that one can make..is to think that others know what is best..BIG BIG MISTAKE !!!!!

It is obvious to me..and some more..but not the majority..that successful trading for the individual.. has everything to do with your personal circumstances..your ability to work hard and learn from your mistakes..and more importantly..being able to "see the wood for the trees" !!!

Successful trading is one of the hardest things to accomplish..it is the hardest thing from "easy money" that you will find..but then again..so many can't be wrong..right

 

[MrScalper]

Very clearly, this guy, after 26 years of "trading", has started to learn that there is a very fine line between trading and gambling. It also seems to me that, had he been advised at some point to take up meditation so as to find out the root cause(s) of his gambling tendencies, he'd have denigrated such advise with "it's all about the edge", etc; when once the basics mechanics of trading are known - 26 years time is ample time to acquire these - it's all about what's between the two ears and the major part between the two ears are linked to the subconscious.

I do not agree fully with your take..I do agree that reflection can bring awareness..but awareness in what context..if you drill down..a lot of it comes down to education..plain and simple..and as our "education system" is dire..to say the least..then it is no wonder most face an uphill battle..not just at trading..but at most things they try in life!

 

[MrScalper]

Hmmmmm..

 

[ironchef]

Hmmmmm..

View attachment 175800

If I stared at the bar charts real time, I won't know that it would gap up like that! The "trend" was down just prior.

 

[Pelt]

Hmmmmm..

View attachment 175800

Which part of this chart is important? Which part would represent low risk?

The stuff to the bottom, or the big move near the top of the chart?

Or something in between?

 

[_eug_]

If I stared at the bar charts real time, I won't know that it would gap up like that! The "trend" was down just prior.

Looks like an uptrend to me..

 

[_eug_]

I've been trading some CL. It goes like this, make money for 4 days straight and then lose everything I earned in 2 trades.