Axiom 2: There is no perfect trade. Therefore, you will always be wrong to some degree.
Corollary: The trade could always have been better.
Corollary: The trade could always have been better.
Day Trading vs. Swing Trading vs. Position Trading 84 replies
Empirical observations and mathematical axioms in FX 0 replies
DislikedAxiom 5: It is easier to lose money than to make it.
I read this somewhere, I don't remember where, and I apologize for not crediting the person who said it. It really made me take pause. It really "sticks in my craw"!!!!
We know it is true. But how can it be? How is it any easier to click on "buy" rather than "sell"? Why is it so easy to be consistently wrong?
This is a validation, and possibly proof, of the belief that trading is 99% in one's head.Ignored
DislikedAxiom 1: Price can go up, down, or sideways at any time. You can not predict direction.Ignored
DislikedYes, definitely without any degree of certainty. As John Piper concludes in his book The Way To Trade (Financial Times professional, 1999, pp 3536), "In my view the only fact that can be stated about markets is as follows: Markets move from extreme to extreme across all time frames".
Here are a couple of (abstract, I'm afraid) paradoxes, that suggest to me that price behavior defies simple mathematical explanation:
1. Every long term pattern is comprised of a number of short term patterns. If short term patterns are effectively random, then summing them "end to end" should (at least, mathematically) create a pattern that is at least as random; yet apparently this is not the case. [A possible answer is that price movement is actually the sum of waves that are superimposed timeframewise; the shorter ones being random, and the longer ones less so...... this is perhaps a more accurate model?]Ignored
QuoteDisliked2. We know that price movement is not completely random (if it was, nobody could profit consistently), yet I believe we can safely say that, with respect to whatever "trends" do occur, their origin is random, and also their length. Now, given that the market is the collective sum of phenomena that is random both in its origin and length, doesn't this ultimately equate to complete randomness?
DislikedAll through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical (technical) formations and patterns recur on a constant basis
 Jesse LivermoreIgnored
DislikedAxiom 3: Markets change. What works now will not work at some point in the future.Ignored
Dislikedthis sounds like an undisputable trading axiom to me
can anyone bust it??Ignored
Dislikedthis sounds like an undisputable trading axiom to me
can anyone bust it??Ignored
Thread Tools  Search this Thread 
