Wisdom Dump

oilman5 · #**161** 20th November 2007, 12:24 AM

i thought..........its cv the really good trader

franktrader · #**162** 20th November 2007, 12:49 AM

Quote:

Originally Posted by CreditViolet

I'm sure there are highly profitable pros somewhere who trade wave patterns, moving averages, chart formations, and the like. In several years of working hands on with such traders, however, I have yet to meet one who uses these methods. The pros do, on the other hand, care very much about who is in the markets and why markets are moving. The principles provide a framework for making sense of market behavior, which then can be used to filter the setups provided by charts, cycles, and the like. The really good traders understand markets; they don't just predict them. - Brett Steenbarger

Just Excellent !!

Saint · #**163** 21st November 2007, 06:00 PM

Quote:

Originally Posted by CreditViolet

I'm sure there are highly profitable pros somewhere who trade wave patterns, moving averages, chart formations, and the like. In several years of working hands on with such traders, however, I have yet to meet one who uses these methods. The pros do, on the other hand, care very much about who is in the markets and why markets are moving. The principles provide a framework for making sense of market behavior, which then can be used to filter the setups provided by charts, cycles, and the like. The really good traders understand markets; they don't just predict them. - Brett Steenbarger

Great Stuff as always....

Saint

CreditViolet · #**164** 22nd November 2007, 11:56 PM

Insight is not an act of remembrance, the continuation of memory. Insight is like a flash of light. You see with absolute clarity, all the complications, the consequences, the intricacies. Then this very insight is action, complete. In that there are no regrets, no looking back, no sense of being weighed down, no discrimination. This is pure, clear insight - perception without any shadow of doubt. Most of us begin with certainty and as we grow older the certainty changes to uncertainty and we die with uncertainty. But if one begins with uncertainty, doubting, questioning, asking demanding, with real doubt about man's behaviour, about all the religious rituals and their images and their symbols, then out of that doubt comes the clarity of certainty. - Krishnamurti

CreditViolet · #**165** 22nd November 2007, 11:57 PM

Years ago, I wouldn't have made that second trade. I would have stuck with my initial long and then watched a small profit turn into a loss before covering. I would have had a good idea, but not the ability to flexibly modify or overturn that idea. To hold an idea strongly enough to act upon it--and risk money on it--but not so strongly that you're wedded to it: that takes an ability to assess and reassess markets on an ongoing basis. You want to identify with those ongoing assessments, not with any single opinion. There is strength in flexibility. - Steenbarger

CreditViolet · #**166** 25th November 2007, 12:01 PM

Maybe markets appear to have a directional bias. But really they do not, all markets are in a transition to surprising the person who thinks he has the direction figured out.

drpsiva · #**167** 26th November 2007, 05:54 AM

Years ago, I wouldn't have made that second trade. I would have stuck with my initial long and then watched a small profit turn into a loss before covering. I would have had a good idea, but not the ability to flexibly modify or overturn that idea. To hold an idea strongly enough to act upon it--and risk money on it--but not so strongly that you're wedded to it: that takes an ability to assess and reassess markets on an ongoing basis. You want to identify with those ongoing assessments, not with any single opinion. There is strength in flexibility. - Steenbarger
nice words of wisdom.your posts are very goo. keep it up.

CreditViolet · #**168** 26th November 2007, 11:35 PM

In 1983 and 1984 I sustained back-to-back losing years. I was totally lost and adrift. After 18 years in the game, I suddenly realized I was clueless regarding price direction and trend. Nothing made any sense to me. For the first time in my trading career, I sought the advice of the trading gurus. Before then, I had always prided myself on my independence in making trading decisions. Yet it had got me nowhere.

I sought counsel from the gurus of Fibonacci, Gann, computerized oscillators such as the relative strength index (RSI), stochastics, and moving average convergence/divergence (MACD), wave, and cycle theories, even astrology-based trading. But you know what? It became very evident to me that these guys were as clueless as me. None of them traded for a living. Instead, their agenda was marketing some trading tool, service, or newsletter. Their methodologies worked great in hindsight, but were too imprecise to work in the real world of trading.

Oscillators such as the RSI, ADX (average directional movement index), MACD, and stochastics were tossed along with my charts. I also wholeheartedly concur with Eckhardt's comments about oscillators: "I think these indicators are nearly worthless. . . . They are close to zero in their profit expectations. What these patterns make during market consolidations, they lose during trends."

In 1983 and 1984 I subscribed to a newsletter that was run by the self-proclaimed guru of computerized oscillators, and you guessed it—the promoter doesn't trade for a living. His newsletter was marginal at best.This guru is still around, though, and is a regular at those expensive trading extravaganzas. - Gary Smith

uasish · #**169** 27th November 2007, 01:19 AM

These are few posts (out of 1445 in my absence) i never miss.

CreditViolet · #**170** 27th November 2007, 06:48 PM

Quote:

Originally Posted by uasish

These are few posts (out of 1445 in my absence) i never miss.

Thanks Ashish

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