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Ridiculous Trading Myths

  • #1
  • First Post: Nov 5, 2010 9:17am Nov 5, 2010 9:17am
1) You should wait for candle open/close to confirm...


Price doesn't care what time of the day or night it is. She doesn't have to wake up at some specified time in order to make to work on time or pick up the kids from day care.


Please add to list as you see fit.
  • #2
  • Nov 5, 2010 9:21am Nov 5, 2010 9:21am
The Trend is your friend.

This is why we all use money. Because we follow the trend. But we dont know what a trend is, when it starts and when it ends...Maybe we should say: The Trend is your Ex-Friend"
  • #3
  • Nov 5, 2010 9:22am Nov 5, 2010 9:22am
Not entirely correct. Daily/weekly/monthly/yearly bars are not without significant meaning. Statistically, price tend to follow the direction if d/w/m/y bar closes near its extreme.
Measure twice, cut once
  • #4
  • Nov 5, 2010 9:23am Nov 5, 2010 9:23am
Quoting The7
But we dont know what a trend is
That is correct. So many try to the trade trend but they fail miserable when it comes to defining a trend.
Measure twice, cut once
  • #5
  • Nov 5, 2010 9:27am Nov 5, 2010 9:27am
She?

Quoting Slack
She doesn't have to wake up at some specified time in order to make to work on time or pick up the kids from day care.
forget about tomorrow, just steal away into the night
  • #6
  • Nov 5, 2010 9:29am Nov 5, 2010 9:29am
Also regarding trending...

Market trends 25% of the time and ranges 75% of the time.
  • #7
  • Nov 5, 2010 9:29am Nov 5, 2010 9:29am
Quoting spekitox
She?
OK, in your case, He.

hehehehe
  • #8
  • Nov 5, 2010 9:37am Nov 5, 2010 9:37am
Quoting Slack
hehehehe
or in you case sheshesheshe

Sorry couldnt resist
Time hides Nothing
  • #9
  • Nov 5, 2010 10:01am Nov 5, 2010 10:01am
Quoting The7
The Trend is your friend.

This is why we all use money. Because we follow the trend. But we dont know what a trend is, when it starts and when it ends...Maybe we should say: The Trend is your Ex-Friend"
I like this one more - "Trend is your friend except when it's about to end."
  • #10
  • Nov 5, 2010 10:24am Nov 5, 2010 10:24am
Let the winners run and cut the losers short.

Duh tell me how.........?

I mean ok it could be true for some traders who have low win rates but u cant just throw it out at every one!
.
  • #11
  • Nov 5, 2010 10:24am Nov 5, 2010 10:24am
Basically any assumption about anything trading related.

Its a vast world, rules can be broken, bent changed
Time hides Nothing
  • #12
  • Nov 5, 2010 10:25am Nov 5, 2010 10:25am
Quoting nasir.khan
Let the winners run and cut the losers short.

Duh tell me how.........
.
um... 5 pip stop 20 pip miminum target SL to BE at 10 and every variable outwards and inwards from there
Time hides Nothing
  • #13
  • Nov 5, 2010 10:27am Nov 5, 2010 10:27am
Quoting CindyXXXX
um... 5 pip stop 20 pip miminum target SL to BE at 10 and every variable outwards and inwards from there
where should i enter?
.
  • #14
  • Nov 5, 2010 10:31am Nov 5, 2010 10:31am
Quoting nasir.khan
where should i enter?
.
Well with that sort of stop you would def want to know!
Time hides Nothing
  • #15
  • Nov 5, 2010 10:31am Nov 5, 2010 10:31am
Quoting fx111
I like this one more - "Trend is your friend except when it's about to end."
and more to this when is a trend actually a trend and by that time is it a trade-able signal still???
  • #16
  • Nov 5, 2010 10:37am Nov 5, 2010 10:37am
you can be profitable with only 2 wins in 10 trades. for me this is myth.... the potential psychological damage of 8 straight losses and then to turn around and make two more trades and hold them both long enough to make back all the losses with some interest would be a massive mental challenge. (8L -2W is just an example there are many more scenarios to mix the wins with the losses. Hope you all can see the point being made)

for short term intraday traders hard hard hard...... for 10 trades made over a month or or more maybe do able, thoughts members???
  • #17
  • Nov 5, 2010 10:45am Nov 5, 2010 10:45am
Quoting >Apocalypto<
you can be profitable with only 2 wins in 10 trades. for me this is myth.... the potential psychological damage of 8 straight losses and then to turn around and make two more trades and hold them both long enough to make back all the losses with some interest would be a massive mental challenge.

for short term intraday traders hard hard hard...... for 10 trades made over a month or or more maybe do able, thoughts members???
True, but if your winner was 100 pips and your losses 5 and you could actually do this consistently then its certainlly nothing to be frowned upon. 5 pips damage 8 times is the sme as two 20 pip hits in a row.

The psychological aspect IMO only comes from how leveraged your trades are, not from winning percentage.

if you lost eight .5% trades in a row and your winner netted you 10% then this is much less psycholological impact than 2 straight 2% losses in a row and your winner netting you 10%.

Poor example I know Im too tired to do the correct math

Which brings me back to the assumptioin thing... SO many ways you can skin this cat and both everything and nothing works.
Time hides Nothing
  • #18
  • Nov 5, 2010 10:49am Nov 5, 2010 10:49am
Quoting CindyXXXX
True, but if your winner was 100 pips and your losses 5 and you could actually do this consistently then its certainlly nothing to be frowned upon. 5 pips damage 8 times is the sme as two 20 pip hits in a row.

The psychological aspect IMO only comes from how leveraged your trades are, not from winning percentage.

if you lost eight .5% trades in a row and your winner netted you 10% then this is much less psycholological impact than 2 straight 2% losses in a row and your winner netting you 10%.

Poor example I know Im too tired to do the...
I appreciate your response, as my anterior motive in the question was to gauge weakness in my psychology!! Me personally, I can't handle more then 6 straight losses, I take breaks in those times! argggghhhhhh the pain!!

cheers
  • #19
  • Nov 5, 2010 10:52am Nov 5, 2010 10:52am
another one for you all.

2 day, 5k a pop trading workshops with self confessed gurus will give you all you need to make millions upon millions trading the markets!!!!
(there's no hidden question is this one I swear! )
  • #20
  • Nov 5, 2010 10:59am Nov 5, 2010 10:59am
Quoting >Apocalypto<
I appreciate your response, as my anterior motive in the question was to gauge weakness in my psychology!! Me personally, I can't handle more then 6 straight losses, I take breaks in those times! argggghhhhhh the pain!!

cheers
Theres a guy in my home town who is a multi millionaire worth something like 400 million and gues what he does?

He bets on the horses. This isnt your regular pro punter he actually treats it like a trader would the market where he has private investors who fund his capital and then he goes about earning them areturn

How does he do it?

He doesnt back the horse he thinks is going to win he goes for the trifectors whereby if you guess 1'st, 2'nd and 3rd place correctly you win your bet.

You can imagine the odds on these bets as they are very difficult to predict. Skome of them I think return 3000:1. So how the hell does he make millions off the impossible bet?

He loses prob 100 times in a row, maybe more I really dont know, before he finally hits the jackpot. He exlpoits a mathamatical inefficiency in the trifector odds system.

Sure he still studies form and everything like any other punter would but his vision goes beyond "the next bet", to him its just about buying time until he gets the one he was after.

Hes been doing this for years as well.... (bastard lol)
Time hides Nothing
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