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 ...

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Old Feb 8, 2018, 1:59am   #17
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Joined Jul 2017
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.
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