Leaving too much on the table, or losses

This is a discussion on Leaving too much on the table, or losses within the General Trading Chat forums, part of the Reception category; Originally Posted by Brumby Have you read any of Nassim Taleb's books especially the one titled "Fooled by randomness"? Essentially ...

View Poll Results: Which do you hate more?
Leaving too much on table? 1 25.00%
or taking a small loss? 3 75.00%
Voters: 4. You may not vote on this poll

Reply
 
LinkBack Thread Tools Search this Thread
Old Feb 8, 2018, 1:59am   #17
 
Quantt's Avatar
Joined Jul 2017
Quote:
Originally Posted by Brumby View Post
Have you read any of Nassim Taleb's books especially the one titled "Fooled by randomness"? Essentially in investing, it works until it doesn't and that randomness plays a much more significant role than is normally understood. What is a truly representative market cycle?
Yes, I have red the book (and the one after long time ago) and I don't agree with everything he is saying... If I remember well the example was with the naked option traders, they'll win 1000 times small amounts and one time they'll lose everything and go bankrupt. You don't need an advanced degree to see this, just enough back testing... Which brings us to the market cycles - represented buy bull and bear periods, as we are right now in the 9th or whatever year of a bull market - easy to see on a chart....

Frankly, I don't believe the markets are random, I do believe they are actually trending, for example the chances tomorrow the SPY will be around the price it is today, it will not go to $200 tomorrow, $5 on Friday $1456 next Tuesday and $67 on March 5th...

And the fact that the markets are not random is what's enables us to actually make money constantly in the long run and there are a lot of examples of traders beating the market with different trading strategies...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
Quantt is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Italy leaving the EU TexasRangersFan The Foyer 163 Dec 21, 2016 1:11pm
When are you leaving? arabianights The Foyer 40 Dec 16, 2010 1:40am
Leaving t' North Skill Leverage Meetups 15 Jan 27, 2009 12:18pm
Grey is leaving us BSD General Trading Chat 138 Dec 19, 2008 5:15pm
Leaving PC on all week JillyB Techies Corner 16 Dec 3, 2007 6:35pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)