Thecorrecttradingmentalityistothinkofitasacomputergameorapokergame.YouraccountPnLisyourscore.Youwanttoscorehigh,butyoualsoneedtobeobjectiveandconstantlyassessyouropportunityandactquickly,yetobjectivelyandruthlessly.
Inotherwords,youneedtowireyourselftobehavelikeacomputerandfollowpre-determinedrulesinapre-definedenvironment.Thesadthingiswhenitcomestomoney,humanbeingiswiredtobecomeveryemotional....[阅读全文]
njrookie's random thoughts
A collection of my posts on investment, trading, and life...
博文
(2014-10-30 07:30:49)
(2014-10-30 07:27:00)
Howtraderandinvestorshoulddealwithstockinvesting:
Trader: 1.tradewhatyousee,notwhatyouthink; 2.donotanticipate;participate;alignyourselfwiththewinningsideinyourtimeframe; 3.tradetheviewsofothertradersastheyleavetheirfootfprintsinthepriceaction.
Investor 1.investsinthecompanyasabusiness; 2.needsthehorizonandgutsofWBtositthroughshort-termmarketmovements. Mostoftime,...[阅读全文]
Trader: 1.tradewhatyousee,notwhatyouthink; 2.donotanticipate;participate;alignyourselfwiththewinningsideinyourtimeframe; 3.tradetheviewsofothertradersastheyleavetheirfootfprintsinthepriceaction.
Investor 1.investsinthecompanyasabusiness; 2.needsthehorizonandgutsofWBtositthroughshort-termmarketmovements. Mostoftime,...[阅读全文]
(2014-10-30 06:45:49)
1Therebalancingrulesofleveragedandinverseetfsareinthesamedirectionastheimmediatepastmovementoftheunderlying.Ifunderlyingmovedup,theybuymore;ifunderlyingmoveddown,theyallsellmore.
2TheydoadecentjobinreplicatingXtimestheDAILYreturnsoftheunderlying,Xbeingtheleveragefactor(ieX=2,3,-1,-2,-3);
3Duetotherebalancingrule,leveragedetfwillOUTPERFORM,iereturnyoumorethanXtimestheunderlyingreturnsovermu...[阅读全文]
2TheydoadecentjobinreplicatingXtimestheDAILYreturnsoftheunderlying,Xbeingtheleveragefactor(ieX=2,3,-1,-2,-3);
3Duetotherebalancingrule,leveragedetfwillOUTPERFORM,iereturnyoumorethanXtimestheunderlyingreturnsovermu...[阅读全文]
