The smartest thoughts about trading - page 4
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Hi all.
It's not for me to judge how clever it is or not, but I liked it and may even agree with some of it.
Anyway, it's a lot of boo-boo, so maybe some of you can't understand it.
The Myth of Autopilot.
To quote the classics - A. Elder: How to Play and Win at the Stock Exchange:
................................
Elder, Williams... and other classics wrote their books when autotrading didn't exist yet. Now 90% of transactions in the market are made by automated machines. So, how are you going to compete with them? Manually?
It's like before, 200 years ago, no one could believe that a man could fly. And now it's OK to buy a plane ticket or even go into space...
Igor Toshchakov
The market exists only because the redistribution of money always takes place at the expense of the majority of participants for the profit of a minority.
Igor Toshchakov
The market exists only because the redistribution of money always takes place at the expense of the majority of participants for the profit of a minority.
Elder, Williams... and other classics wrote their books when autotrading did not yet exist. Now 90% of transactions in the market are made by automated machines. So, how are you going to compete with them? Manually?
It's like before, 200 years ago, no one could believe that a man could fly. And now it is normal to buy a plane ticket or even to space...
If he mentions autotrading then he has already been.
What's more, it's a primitive amateur level of auto-trading
If he mentions autotrading then he has already been.
Moreover, what is meant is a primitive amateur level of autotrading
How is amateurish different from non-amateur?
What is the difference between amateur and non-amateur?
Amateur isn't. That's why Edler didn't like him. ;)
Amateur => professional.
So why wasn't it loved by Edler...?
The unloved one is not loved. That's what Edler didn't like. ;)
))
The axioms of the stock speculator
Basic Axiom #1
Anxiety is not an illness, but a sign of health. If you are not worried, it means you are not risky enough.
SUBSIDIARY AXIOM #1.
Always play for significant stakes.
SUPPORTING AXIOM #2.
Do not succumb to the supposed allure of diversification.
Basic Axiom #2
Know when to stop and take your profits.
Greed means losing control of your desires.
Greed is an inflated desire for maximum profit.
By reducing your degree of greed, you increase your chances of enrichment.
Never watch the price of those shares you have already sold.
SUBSIDIARY AXIOM #3
Decide in advance what profit you want to make on a trade, and once it is made, immediately close the position.
The speculator must necessarily spend a portion of his stock profits.
Basic Axiom #3
When a ship starts to sink, don't pray. Jump in!
Refusing to admit your own mistakes is the worst choice you can make.
Learning the loss cutting technique is a vital task for any trader. The fact that most men and women are unable to master this technique points us to one of the key reasons why most market participants are not good traders.
SUPPORTING AXIOM #4
Treat small losses calmly as an inevitability. Be prepared for the fact that you will have to go through several of these losses on your way to major success.
Basic Axiom Four
Human behaviour is unpredictable. Don't believe anyone who claims to have foreseen the future.
If you want to be successful in the stock market, you must get out of the habit of listening to forecasts.
A successful trader does not follow a guideline which points to what is only likely to happen, but reacts to what actually does happen.
Basic axiom number 5
Chaos is not dangerous until it looks orderly.
Don't look for patterns where they don't exist.
Every time you think you're in control, you're actually in danger.
What doesn't kill us makes us stronger.
SUPPORTING AXIOM FIVE
Beware of the trap of historical parallels.
SUPPORTING AXIOM 6.
Beware of the illusion of repeating figures.
AUXILIARY AXIOM NO. 7
Beware of the delusion that correlation and causation exist.
The human brain is set up to look for patterns. It will readily make the transition from reality to fantasy if that is the only way to get a satisfactory result.
Beware of inventing explanations where you can't find solid evidence, and you'll save yourself unnecessary damage.
SUPPORTING AXIOM 8
Beware of a deceptive gambling hunch. (The illusion of control).
Basic axiom #6.
Avoid putting down roots. They impede movement.
SUPPORTING AXIOM #9.
Don't let yourself be trapped by feelings of attachment and nostalgia.
SUPPORTING AXIOM 10
Never hesitate to part with your assets if a more attractive alternative appears.
Attachment to things reduces your mobility, your ability to move quickly enough when the need arises.
Basic axiom 7
A hunch can be trusted if it has good reasoning.
It is inherent in man to know something without knowing, however, that he possesses that knowledge.
AUXILIARY AXIOM NO. 11
Never confuse intuition with hope.
Be especially wary of any intuitive clues that promise exactly the result you terribly want.
Basic axiom #8
It is unlikely that God's plan for the arrangement of the universe includes making you rich.
SUPPORTING AXIOM 12
If astrology worked, all astrologers would be rich people.
SUPPORTING AXIOM 13
You don't have to disavow superstitions. They can be fun if they occupy their proper place.
Basic axiom 9
Optimism means expecting the best, but it is knowing what to do in the worst case that gives us confidence. Never make financial decisions simply on the basis of optimism.
Basic axiom 10
Ignore the opinion of the majority. It is likely to be wrong.
SUPPORTING AXIOM #14
Never follow the whims of others. Often the best time to buy is when no one else wants it.
The best time to buy is when most people think the purchase is futile.
Don't allow yourself to act thoughtlessly, whether you decide to go against the crowd or join it.
Basic axiom #11
If an asset is not profitable on the first try, forget about it.
SUPPORTING AXIOM #15
Never try to save a bad investment by averaging it out.
Persistence is not always good for traders.
Basic axiom #12
Long-term plans breed a dangerous belief that the future is in control. You should never take your own or anyone else's long-term plans too seriously.
SUPPORTING AXIOM #16
Avoid long-term investments.