Quote:
Originally Posted by Chuck Norris
As you know Scudz, I spent over 2 years with excellent results ignoring just about everything every book says. While this works well for short term trades based on the psychological element of the market, I don't know if I would have the same advice for someone looking for investment advice.
It really comes down to your time horizon and your temperament. The things you're talking about are pivots, market movement based on volume specifics, and trends. While I'm the first to agree these are essential in timing markets, it depends on how long you plan on being in the market itself (time horizon).
Plus there is a greater level of risk. Not everyone wants to spend the time we've spent learning the ropes before jumping in. In fact, I would say there is probably one in ten thousand that spend as much time as we do to learn the markets. It's a life long journey with lots of ups and downs and it's not for everyone.
I hate to use poker as an example but how many people are pro poker players that survive?
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You're absolutely right. But then again, didn't many of us go to post-secondary school of some sort to earn a higher pay as well? I suppose not everyone wants to spend time learning, but they definitely should! The tuition can be so much cheaper and the rewards...
I equate to spending time looking and researching the same amount of time learning and practicing trades. Otherwise, if people didn't want to spend time, they'd hire someone to do it.
Also with your respect in risk, I've see many, if not the majority of investors willing to hold onto a losing trade and losing more than 50% of their investment. So I too, see the risk part being pretty much on equal as well.
Now granted, there are those who do well in value investing. The Stock Market thread is an testament to this with fellow RS members doing well. In fact, I used to look for TERRIBLE financial statements and hunt for companies that have a quick rise in their stock price and would short the hell out of it for quick profits. Not always easy, but the odds are definitely in your favor. Sometimes it's so easy it becomes hard to jump in because EVERYONE sees it.
Lastly, I find it funny that I too liken trading/investing like poker. There's skill, there's luck and if you're good, you can live off of it.