Friday, January 18, 2013

The Idiot's Guide to Trading Stupid Markets

There are all kinds of trading idiots, using every possible means of technical, fundamental and even astrology-based (really) trading systems out there, and indeed, this bunch have idiots have tried all sorts of strategies over time between them, but are really just taking their own view on price action these days, more than anything else.

This is how this bunch of idiots view market action, they attempt to envisage what the man driving the computer game from the other side will do, to always trap the maximum amount of stupids going the wrong way at all times.  What would we idiots do to to entice fools to bet the wrong way? 

Click for idiotic clarity
Then just try very hard not to fall for that..

..Watch carefully while the market hoovers the other stupid easy money, wait for the trap to spring, and commit the idiotic funds. Pretty simple really.  Idiots dont actually even have to be right that often.  If the gambling is kept at (eg) 4:1 and above risk:reward (easier said than done) then winning 1 in 4 bets, still winds  up positive.  If you then can win 1 in 2, you'll be a rich idiot pretty quickly.

There is nothing clever here going on at all, only an idiotic view of how markets work to take your money, that in itself, mostly works. Whether or not there is "a man" playing the other side of the screen, if you treat it that way, you have a lot more chance of not losing your ass every time you press the buttons. 

It should also be noted, that plenty of other idiots (not us) who have been trading on the long side have had a much easier time of it and would have banked good money yesterday. They would have been selling out towards the highs, it's only the Fools who think that equities have anything to do with the economy any more and who are long-term buying near the top that the idiots are extracting money from here. 

Being idiots, we are often wrong. The markets could explode higher, it will cost us 1% of the account to be wrong, and open float on the 2 trades is currently 20pts (+/-) x 70 contracts = +$1400

Not enough to think about banking (1.4 : 1 risk reward = BigNO-NO)  the idiotic guide to wealth creation via the trading computer game only works when you let the idiotic maths play out.

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