@barjon - as per the rep - I used to get sweaty palms when I first started out, and that was on a smaller account. Still, had to have the do or die attitude or as you've aptly put it 'having the balls'.
I like your quote.
@FXX - let me first attack you on this line - you're strong, I know you can handle it
'impossible to predict the formation of a chart setup in real-time' - see above post for context.
So, impossibble is not a word that resonates with me, however, I do appreciate that many use this word in their lives on a regular basis. My advice, don't use it. It doesn't exist.
Secondly, the word 'predict'.
I hear so many wannabe people who use the word predict in a way usually within a sentence containing the word implossible. Prediction is just that, and in fact what every trader in the world uses. Even the weather person makes a forecast/prediction but based on highly likely and studied events with the best equipment and up to the minute updates. Prediction is another word for guess, whether that be an educated one or not is irrelevant.
For example, and forgive me if this goes on a bit, maybe best left for the pub but I'll try and put it in simple terms.
I predict a bus is going to crash through my office wall today.
It is just a prediction but is it likely, more to the point is it first, possible then is it probable.
So we use these two words only to make a prediction, possibility followed by probability.
Am I on a bus route, if so, how many busses pass on a daily basis, how many crashes have come before ect etc. In fact you'd be better off betting against me (assuming no insider trading/knowledge) that a bus would not crash through my office wall today. Although a possibility, it is however unlikely and therefor not probable.
I heard it best explained like this:
It is impossibbble for me to win the lottery this week as I have not bought a ticket.
So, I buy 1 ticket and the possibility of me winning is now 100%, ie, I can now win the lottery. I have now changed the outcome from definitely not winning the lottery to a 100% possible chance of winning the lottery, but, it is unlikely.
In fact I think the odds run in several millions to 1.
So, I now buy several million tickets, the possibility of me winning the lottery remains at 100% possible, whereas if I had no tickets would be 100% not possible. But, again, with having several million tickets, the chances of me winning (probability) goes up immensely. This is probability and possibility.
If I buy all the combinations of numbers I will definitely win the lottery 100% guaranteed. But of course this would not make financial sense, but nonetheless I would win.
If I do not trade today, I will not lose money, I also will not make any and therefore I have put myself in the same position I found myself yesterday and tomorrow will also be the same. To change tomorrow, I have to change today (now).
Keeping in line with TA and FA (Technical and Fundamental analysis), of course every trader needs to have at least a basic understanding of economics and micro and macro factors, even if one doesn't understand them or know how they work, can at the least stay away from big FA breaks. This helps prevent moving averages (MA's) being skewed without understanding or caught out whilst in a trade - whipsawed.
I don't know how electric works but I know not to stick my fingers in the plug sockets.
So I just flick the switch and see the light - and yes that line is polysemantic.
Its quite a lengthy conversation and for the sake of the journal would prefer to discuss (if you so wish) on another thread - or at the pub, or if I may suggest my second link below which covers all topics to help others and ourselves learn more.
Therefore please reply or discuss here:
http://www.trade2win.com/boards/general-trading-chat/224676-anyone-need-any-help-11.html
Good luck all,
Lee
