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Old 01-17-2007, 07:37 PM
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Re: Chaos Theory: What Is It?

Frankly, I don't think chaos theory matters at all with regard to trading.

You would be far better served to invest your time in understanding how the professionals move the market to and fro, whipping the retail traders into frenzies of fear and greed, while they accumulate and/or distribute their holdings at a profit to those same retail players. A decent understanding of dual auction theory and thus a smattering of market profile probably wouldn't hurt anyone either.

However, focusing on chaos theory in some attempt at getting a usable edge in the markets is probably so far out of the realm of probability (you do think in terms of probabilities as a trader now, don't you?) that no further time should be spent on it and we should probably just let this thread die a natural death right here.

I will go so far as to say this much... if you continue to trade using the same strategies, indicators and methods as most all the other retail traders, the professionals will continue to eat your lunch in short order.

There are frankly very few highly profitable traders on Earth who are going to share much of value with you until such time as what they want to share is either of dimished value or they are too old or too rich to trade any longer. If you are somehow lucky enough to find and apprentice with one of them, be sure to pay strict attention to whatever they teach you, as it is bound to be immeasurably better than the re-hashed poop claimed as trading wisdom from 99% of the so called trading gurus out there in the marketplace who are really nothing more than opportunistic marketers.

There is absolutely no substitute for learning the basics of the markets, a little crowd psychology and for investing tons of screen time actually trading the markets day after day, while examining your trades at the end of each and every trading day to glean what worked and what did not and more importantly, why. To think you can just buy a software program or take an expensive weekend course and become a trader is the height of foolishness and the more experienced traders will be most happy to take your trading capital as fast as you can put it on the table.

Do your homework (and I mean LOTS of it), trade a single market until you know it backwards and forwards and trade with a single contract (or two if you are one of those who likes to scale out and keep a runner) until you are consistently profitable. Here endeth the lesson.

Happy Trading...


Last edited by ezduzzit; 01-17-2007 at 07:49 PM. Reason: typos
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