Just think about the subject for a moment. Then we'll continue. If someone understands what this is about and has links to other forum threads that illuminate it, you're welcome to refer.
How often does it happen that you hear something repeated hundreds of times and you just don't get it? And then a lightbulb goes on and everything becomes clear. It's a miracle that dust can learn anything.
Do you know the difference between knowledge and opinion? When you're not sure, you have an option; when you know, then you have no doubt.
What's the one thing you need if you struggle, otherwise you'll give up? Patience. What do you need when you succeed in order to let things work as they should? Patience. What do you need when things start falling apart and you need to rebuild? Patience...
"Good things come to those who wait." "...money is moved from the active to the patient." Ah, the wisdom. Let's explore this dimension, this quality, this virtue. As virtuous as it is, surely it's not without drawbacks? Otherwise everyone would be "doing" it. I want to sing an ode to patience, and perhaps you'll join your voice with mine, and it will be a thunderous choir. Or, perhaps, our opponents also unite in their informed opinions and speak out vocally, forming their own chamber.
Any patient trader, in my opinion, will face three nothings that stand in the way:
No setup. Have to wait for that Grade A setup, a perfect opportunity. an impatient trader will jump the gun.
Not this time. A trade goes against you. Have to take quick loss and wait for another setup. An impatient trader suffers drawdown.
No go. A trade doesn't work right away, it's going nowhere. Have to wait for it to move for or against you. An impatient trader will either close the position or get bored and forget about it (without hard stop loss) or whatever.
100% is a round number, because it's really a 2, and 2 is 10 in binary notation.
But seriously, why would you aim for 1% gain and be willing to suffer 50% drawdown? Unless you're a bank and you have treasury standing by in case you need a bailout.
If you're a treasure hunter, wouldn't you expect to be compensated for your efforts hundred- or thousandfold? If you're a lone gold miner, do you need a fortune to make a fortune? No, you just need a shovel, a bucket, that thing with tiny holes to wash your rocks, and some luck.
Patient investor should aim higher. 100% is just a psychological sign of above average gain. Is it possible to gain 100% with 5% drawdown? Why not? Wouldn't you like to know how? Or, perhaps, you wouldn't bother, because with 50% drawdown, 1000% is possible?
I'm just getting started. I'm doing this for my own benefit first, as a record of my thoughts and possible addition to my knowledge from your contributions. I can't be sure how long I will last, but long live NNN100 !
