Wednesday, August 21, 2019

Trading/Investing/Speculation - A simple thing complicated by human

Market goes Up and Down irrespective how you identify yourself or how you call others especially when you try to label others negatively. Market goes any direction it wants irrespective of our market exposures whether we have or do not have any positions. Market goes the path of easiest act independent of our BUY(LONG) or SELL(SHORT) positions. Market tread it own way ignoring of the volume.

Human has the tendency to link almost any variables one can find and associate it with the trend direction. If we ignore all this variable noises and look at the chart in the most innocent way like a kid, it is more likely you will be able to read and see as it is.

Yes, it is true to consistently make money at every opportunity in the market need no rocket science and maths, but the eye of an innocent kid. In fact, it is true after 30 years in the market, I surrender to admit that the more simple the trading system, the higher the probability one can consistently beat the market.

What it needs and requires from the you and me to consistently outperform the market is to ask ourselves, DO WE BELIEVE THAT THERE IS NO NEED TO PREDICT THE MARKET BUT FLOW WITH THE MARKET.

To flow with the market means we can never pick the top and bottom. To flow with the market means let market pick its top and bottom. To flow with the market means we change positions after market has changed.

The question is do we have a simple system that help us flow with the market?

Market is a simple creature and some philosophical concepts is more than enough to beat the market.

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