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I have to agree that there are some people that will understand the "theoretical stuff" and others that won't or can't. A fellow approached me about trading and when I mention understanding some basic concepts I get blank looks. I am not sure if it is too hard or if it is too much work or his brain works in different ways or what! But he is happy to use a tip sheet.I think it is harder, for example, for a certain personality type that makes up 75% of the population to be successful at trading because they are not into theoretical stuff. They are into facts, so they are going to do well maybe trading from what they read in a newsletter, or getting advice from someone, as long as that person could give them the facts about why they should take the trade. But they will have trouble grasping the theoretical concepts I have been talking about that are involved in designing something that fits you. They would not even be interested in that.
Realist said:No, value types do not predict. They protect.
They try and buy a company for less than what it is CURRENTLY worth.
IFocus said:My own experience of why traders fail is that they simply don’t carry out enough testing or none at all.
From testing extensively comes to some degree a little more preparation for the psychology issues plus perhaps formation of an actual plan that may mean something.
Then there is the account that’s too small with the positions too large……
Focus
stevo said:In a recent interview in S&C (Nov. 2006) Van Tharp stated;
I have to agree that there are some people that will understand the "theoretical stuff" and others that won't or can't. A fellow approached me about trading and when I mention understanding some basic concepts I get blank looks. I am not sure if it is too hard or if it is too much work or his brain works in different ways or what! But he is happy to use a tip sheet.
The other point in the Van Tharp's interview is the concept of designing something that fits you. It is surprising the number of people that want to trade short term that work full time! If a trader sits down and thinks through what their objectives are, and how the rest of their life will impact on their trading they could learn something.
So are you saying they buy to keep at their buy price? That is for it not to go up in price?Realist said:No, value types do not predict. They protect.
They try and buy a company for less than what it is CURRENTLY worth.
Realist said:Most traders fail, much like most astrologers fail. Prediction does not work.... Yes!! Anything can happen.
Brokerage, taxes, and inflation reduce winnings, stop losses pull traders out of good stocks, trailing stop losses bring tax debt and brokerage fees to otherwise good holds. And charting is Astrology, it does not work!!
Shares should be bought for longterm dividend income.:
so yK u are saying you can bait a facilitation trader?? Im not sure I agree with you on this. If I take on a line of 200k BHP how are you going to bait me with 2k or 5k BHP?ducati916 said:Correct cash market.
Facilitation traders [as an estimate]
Retail [as an estimate]
Excluding MM's [GS etc]
jog on
d998
I always thought it was the other way around! They often oversimplify a complex situation to get the story across. One of the rules when writing a media release is to put the story in the first paragraph - that's often all we read. It may depend on what papers you read.On a daily basis newspapers regularly provide a complicated analysis to what is a very basic scenario
stevo said:I always thought it was the other way around! They often oversimplify a complex situation to get the story across. One of the rules when writing a media release is to put the story in the first paragraph - that's often all we read. It may depend on what papers you read.
It's important to understand why traders fail if you are one of the failures, or you are trying to sell something to traders to help them succeed. The psychology of traders is very important to the marketing department!
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