136
I think Frikkie (or Chuck) will let the market rally a little before we go completely 100% risk off into the weekend. Expect Wall Street to sell off later after close of JSE.
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138
Shares / Re: Lazy Trading System
« on: August 31, 2015, 10:34:23 am »
There is no such thing as a Lazy Trading System. Trading by its very nature is active. Investing is passive and can and should be done in a lazy way.
Trading requires watching volatility, momentum, sentiment and a host of other time-based criteria and market indicators and acting on them. With trading you need to beat taxes and brokerage fees at the very least. You also need to run profits at least 3x your losses. If you can do this then statistically you will make money.
Why? Because trading is a 50:50 bet each time. So if you run your 50% winners to 30% return each time and cut your 50% losers to 10% loss each time then you will make money statistically. Of course you will probably have more losers cutting out around 10% loss than winners reaching 30%. The problem is that most "traders" do the exact opposite. They run their losers and cut their winners. If you can master this psychological flaw then you will be almost as good as a bot. But don't expect a bank to hire or pay you because they don't have to pay their bots and their bots work 24x7.
Trading requires watching volatility, momentum, sentiment and a host of other time-based criteria and market indicators and acting on them. With trading you need to beat taxes and brokerage fees at the very least. You also need to run profits at least 3x your losses. If you can do this then statistically you will make money.
Why? Because trading is a 50:50 bet each time. So if you run your 50% winners to 30% return each time and cut your 50% losers to 10% loss each time then you will make money statistically. Of course you will probably have more losers cutting out around 10% loss than winners reaching 30%. The problem is that most "traders" do the exact opposite. They run their losers and cut their winners. If you can master this psychological flaw then you will be almost as good as a bot. But don't expect a bank to hire or pay you because they don't have to pay their bots and their bots work 24x7.
140
"Anybody with a pulse was nervous yesterday".... which is why humans don't trade anymore. Computers do and the bots did a sterling job of keeping liquidity going yesterday... yesterday could have been a repeat of 1987 but it was saved by the bots...