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MightyMouse

Market Wizard
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Everything posted by MightyMouse

  1. What would be the point? Eventually, The banks will lose everything to the cost of doing business since he is not making money and is making only what he lost minus the transaction costs. Think it through. Even if they act as market maker, there are costs associated with operating a trading operation that have to be absorbed.
  2. I, respectfully, disagree. Too many traders overtrade and some of them are very good traders too. Overtrading leads to excessive fees. If you are trading for a tick or 2, the transaction costs are too high as a percentage of the trading profit. A trader needs to be at an unsustainably high win rate to make money. Eventually, the costs suck his account dry.
  3. Banks make money until they lose all of it and then some, recognizing that they didn't have a handle on the risk they were taking. Cycles of fear and greed over and over again. No one is immune.
  4. Good traders and bad traders take your money from you and keep it or give it to someone else, depending on how good or bad a trader they are.
  5. A priest is driving down the road when he comes across a pig lying dead in the road. He contacts the police to inform him of his find. A cocky desk sergeant laughed and said " did you give it its last rites?" "No", said the priest. " I thought I would inform his next of kin first".
  6. 1. Too many people sucking on the goverment teet. Do not think for a moment that I am referring only to the low income or impoverished. The wealthy or special interest groups snag a much bigger chunk than the poor do. he poor receive a pittance in comparison. We could easily fund the poor. We need to borrow to fund the wealthy.
  7. Stop trading in the markets. Trading in financial markets is a very advanced form of trading, no matter which instrument you trade. You are guaranteed to lose. If you are winning without knowing how to trade, it's because you are lucky. You might run out of luck. Start trading other things: Cars, baseball cards, other collectibles, etc.Learn to spot value, desperation, over supply, tight demand, etc, etc. Learn to succeed in these markets, then decide if you would like to trade the financial markets. When you trade, you are trading with other traders. Learn who they are, when they are desperate, over confident, foolish, etc. Then find indicators that wil help you locate those people who exhibit these behaviors and exploit them. Financial markets are much more difficult because you can't see the other guy and need to learn how to find them, always keeping in mind that others are trying to snare you at the same time. From the movie Rounders: When you are sitting at a table (poker) and you can't tell who the sucker is, then it's probably you.
  8. Minimal losses is the key. If you are putting size on from the start, then a good stop is important. If you are starting really small. then the stop isn't that big a deal if the amount risk isn't a risk to your existence as a trader.
  9. I dread the day the fed is no longer in control.I don't think I will be around then.
  10. Simple supply and demand issues. Lots and lots of supply created on the way up and maybe some more on the way down too. Gold has a long way to go before the market works through all that supply.It will deal with the supply at lower and lower prices until all of it has been processed.
  11. I totally agree. I will add that no market is good for learning how to trade. An individual who wants to trade a market should know how to trade first and then learn to trade a particular market.
  12. Gold is a commodity. All commodities closely follow the laws of supply and demand. When prices rise, supply enters the market. Historically, or normally, supply was physical, but we no longer live in normal times or we have a new type of normal. There are more ways to get involved in PM than one can list; most of which are paper gold that does nothing more than mimic the price of gold. More people have access to PM than ever before and that leads to bigger and deeper bull and bear cycles. Since we have seen the last sucker who bought, we are now looking for the last sucker who sold as we work through this incredibly oversupplied market. We are a long time away from the bottom. At this point we can expect gold to drop to lows not seen in at least a decade. A guess would be somewhere near $500 an ounce.
  13. Yup, smart investors held onto Woolworth's, Pan Am, Enron, Eastern Airlines, Commerce One, and Merry-Go-Round. Each was a great investment given the information available at the time. You might want to change this from investor to trader and instead of finding great investments, they find great money making opportunities. Your definition sounds little bit like bottom fishing, or trying to catch the falling knife. Catching the knife leaves you with multiple lacerations. Also smacks of the convention: The market always comes back. This is true as long as there is a central bank that can inflate the value of assets. Be the Ball, Danny.
  14. Your market reversal will occur in a few years. Sure, there will be a hiccup here and there, but we will see S&P 2500 - 3000 before we see a major downturn. 100 or 200 points is not a major downturn, but it is enough to get technicians, chartists, late comers, etc. confused and betting in the wrong direction. Shorts in a bull market tend to fuel the move to the upside. We have been through a period of unprecedented actions performed by central banks and it will lead to unprecedented market reactions. In other words, to gauge how high we can go, you'd have to go back to a period in time where a single central bank pumped 4+ trillion dollars into the system to compare to today's environment. If you are short equities, you'll have to squeeze your butt cheeks for a while before the market matches the results expected in the physical world.
  15. Jack interviewed some of the luckiest traders over the decades, many of whom subsequently went bust. Trading is awesome when you wind up on the right side of the trade no matter how aggressively you trade.
  16. Yes, the incubus at work. Generally, though, there are not enough committed buyers entering the market. A committed buyer is not someone who sells at the slightest move down or sells because of a lack of movement. A non-committed buyer is neither dumb nor astute; he is simply not committed to the upside.
  17. Banned? By whom? It feels like the site was abandoned.
  18. I think the 95% failure rate origin comes from 100% of the traders who lose money trying to find comfort in why they lost money; it is too hard. I agree that It makes no sense to study the accounts of losing traders to determine what the odds of becoming a losing trader are.
  19. The course is one of the very best trading courses that money could buy. But, before you take the course, I would like to send you pics of a couple of bridges I have available at discounted prices. Buy one, then, when you are making money from the bridge toll, you can buy a shortcut course on trading the emini.
  20. The stock price is in a down trend. It's always a good bet to bet on continuance and not try to be a hero and call a turn. The indicators you have chosen to display are indicating a divergence which may lead you to think that the stock's price is going to go up and not down. Price has made a new low and a higher periodic high and not a lower high. I would want to see a lower high and a lower low to be confident about a short. I would also want to see a higher low get put in, which was not, before I was confident about trying a long. If it broke out above the recent high, then a higher low would have been but in. If I had to trade this, I would take a long with a buystop entry above the high made around 65 or I would take a short with a sell stop entry if it made a new low. I might try a short from a higher price with a sellstop if I could find a window of opportunity in a lower timeframe. I would get short on a lower timeframe since being short is consistent with the major trend down. I would not want to get long on a lower timeframe than the timeframe being displayed on the chart.
  21. 1180 support is a mirage. Those who get long, anticipating that 1180 will hold, will help grease the slide below 1180.
  22. Patuca you are not alone. Take comfort in the fact that you are in the minority. The majority is usually wrong.
  23. Selling into strength is a good strategy but it is not a good strategy when strength is followed by more strength. Spy rarely gaps, but it does trend.
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