Trading the indices?

[HaloTrader]

Jackolan that reminds me of the theory i created on my first day of trading.
If i start with £500 and traded for 120 months @ 25% per month i would have 212897991999907.53
Well, i'm 3 months down the line of live trading and averaging more than 25%, 10 years and i've going to beeeee SOOOO RICH.

Aren't I ?

 

[peto]

lol intenet

go make some money guys

Gotta love the ignore feature :clap:

 

[jiggly]

I'm beginning to see why 95% of traders lose money.

This completely fails to take into account that the market is not "mechanical"... it's built out of human dreams and fears.

If you really think that someone buying bank shares in 2009 is no less fearful of losing their money than the same buyer on the same share in 2006 you are completely missing the point of "market dynamics." And if you can't see that such fear would radically change the way the stock behaves, well, then you will certainly lose your money - or at least, not make as much... this has nothing to do with "probabilities" at all... someone who realises that the price behaviour has changed will make more money in such a climate (shorts would be WAY more profitable in 2009 than 2006, as an obvious example).

mate, you have taken my reply, and answered back in a different context, completely........

 

[jiggly]

if you take away the axis labels from a chart on any financial instrument, they all look the same,

because human nature is the same across all instruments.

fear and greed, supply and demand, the principles to trade are the same across every market,

regardless if it is indices, currencies or crude oil.

i hope this helps the original poster in answering his questions

 

[jiggly]

Applied back to the original post (at last)... it means that S&Rs do exist in an index, but they will be applied in a slightly different way to that of an individual share.

Phew.

how is their application any different, would you care to outline these differences that you mention?

 

[Technically Fundamental]

Part of the hard knock club

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