Wisdom Dump

CreditViolet · #91 16th March 2007, 05:20 PM

"There are hundreds of trading systems that work, but they are all very difficult to find" Schwager

CreditViolet · #92 16th March 2007, 05:21 PM

I'll reiterate that demand, supply, support, resistance, buying pressure, selling pressure are all related, but distinct. Unfortunately, the meaning of demand and supply have become corrupted, like "overbought" and "oversold". Supply, for example, does not refer to some hoard somewhere that is drawn upon in order to satisfy and overwhelm demand, like a trainload of avocados. Thinking of it in this way is not productive, or even useful, and it can lead to errors in perception which can lead to further errors in strategy creation, trade entry and trade management. For example, thinking of supply as a pile of something can lead to expectations that it will eventually run out. These expectations may not occur if one perceives the activity as selling pressure instead. Selling pressure can last for a good long while.

CreditViolet · #93 16th March 2007, 05:23 PM

Daytrading is an active pursuit, requiring constant attention.Most of the time nothing is happening, but when it does the trader must be ready.Many beginners decide to concentrate on one market, to get to know it in detail.This is the route to success in the nontrading world; so it must be true of trading,right? Wrong! Any given market offers low-risk-trading opportunity only rarely, and sometimes nothing happens for days.It is extremely difficult for a committed trader to do nothing for long periods.Watch the ticker, take no action; watch the ticker, take no action...boredom.Ennui.Monotony.

CreditViolet · #94 16th March 2007, 05:24 PM

“Hey, Kid, see how these guys all talk among themselves, figuring stuff out about why this happens and why that happens? You see how often they are wrong? Well, I’ll tell you something that could help you: It isn’t what these guys say to each other that counts—it’s only what the tape says that counts" - Reminisces of a Stock Operator

beginner_av · #95 16th March 2007, 05:45 PM

Quote:

Originally Posted by CreditViolet

hi, If you are talking of Niederhoffer, he is doing quite well now with his Matador Fund...and I dont really mind if he blew up once, everyone does once in a while in trading

ya CV...that was exactly my point...better late than never..though a very expensive lesson indeed....

wonder if he writes naked puts anymore..any idea?

CreditViolet · #96 3rd April 2007, 05:59 PM

Quote:

Originally Posted by beginner_av

ya CV...that was exactly my point...better late than never..though a very expensive lesson indeed....

wonder if he writes naked puts anymore..any idea?

Yup..still selling volatility I heard..he ended the year in positive after the May drawdown.

CreditViolet · #97 7th April 2007, 05:24 AM

"The importance in asking a question is not to find the answer but to understand the problem because there is only the problem and not the answer. To ask a question is easy; but to go into the problem is extremely difficult because once you know what the problem is, the very seeing of the problem is the understanding of the problem. The moment I can state the problem very clearly, simply, the answer is there, I do not have to look beyond. But most of us do not know what the problem is. We are confused about the problem and so naturally we look, in our confusion, for answers; and that will only produce further confusion. "

http://www.jkrishnamurti.org/

oxusmorouz · #98 7th April 2007, 02:02 PM

To what extent I am eligible to post in this topic, I do not know but please allow me to post a few lines which I found to be good...
Fischer Black:
"Investors do not appear to be as rational as they claim to be. Many investors react to irrelevant information called "the noise signals". Though they think they are acting intelligently, these investors can expect to earn the same return as an investor who buys and sells based on a coin flip. Investors who follow the advice of financial gurus who base their advice on noise signals are noise traders by proxy.
In fact , investors are guilty of numerous departures from rationality.They fail to diversify, they trade too actively, they increase their tax liability by selling appreciated stocks but hold onto losing positions, and they trade mutual funds with high fees. Investors' deviations from maxims of economic rationality turn out to be hughly pervasive and systematic. For example, when choices are framed in terms of potential gains, investors tend to choose the option most likely to earn a gain, even if insignificant in amount. However, when the same choices are framed in terms of potential losses,investors will assume the risk of a very significant loss just to avoid the certainty of a small loss. This error, called the disposition effect, is thought to explain why investors sell winners quickly, so as to be sure to earn a gain,even if it is small, and hold onto losses even if it means there is a chance the loss will turn into a much larger one"

CreditViolet · #99 7th April 2007, 02:48 PM

Quote:

Originally Posted by oxusmorouz

To what extent I am eligible to post in this topic, I do not know.............................old onto losses even if it means there is a chance the loss will turn into a much larger one"

Good one oxy.....

oxusmorouz · #**100** 7th April 2007, 02:50 PM

Thank you,CV

Similar Threads for: Wisdom Dump
Thread	Thread Starter	Forum	Replies	Last Post
Quotes of Wisdom	jaideep	Words of Wisdom	5	24th November 2007 09:35 AM
Gandhiji's Words of Wisdom	SavantGarde	Words of Wisdom	1	5th November 2006 09:38 PM
Wisdom From Masters	inxsofme	Equities	13	18th July 2006 11:49 PM
Wisdom through pictures	Ratul	Words of Wisdom	2	25th March 2006 11:12 AM
Words of wisdom indeed	jaideep	Words of Wisdom	1	9th October 2005 07:25 PM