Thecorrecttradingmentalityistothinkofitasacomputergameorapokergame.YouraccountPnLisyourscore.Youwanttoscorehigh,butyoualsoneedtobeobjectiveandconstantlyassessyouropportunityandactquickly,yetobjectivelyandruthlessly.
Inotherwords,youneedtowireyourselftobehavelikeacomputerandfollowpre-determinedrulesinapre-definedenvironment.Thesadthingiswhenitcomestomoney,humanbeingiswiredtobecomeveryemotional....[
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Howtraderandinvestorshoulddealwithstockinvesting:
Trader:
1.tradewhatyousee,notwhatyouthink;
2.donotanticipate;participate;alignyourselfwiththewinningsideinyourtimeframe;
3.tradetheviewsofothertradersastheyleavetheirfootfprintsinthepriceaction.
Investor
1.investsinthecompanyasabusiness;
2.needsthehorizonandgutsofWBtositthroughshort-termmarketmovements.
Mostoftime,...[
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1Therebalancingrulesofleveragedandinverseetfsareinthesamedirectionastheimmediatepastmovementoftheunderlying.Ifunderlyingmovedup,theybuymore;ifunderlyingmoveddown,theyallsellmore.
2TheydoadecentjobinreplicatingXtimestheDAILYreturnsoftheunderlying,Xbeingtheleveragefactor(ieX=2,3,-1,-2,-3);
3Duetotherebalancingrule,leveragedetfwillOUTPERFORM,iereturnyoumorethanXtimestheunderlyingreturnsovermu...[
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