Wednesday, January 26, 2011

Bored to Death

"Trading is meant to be boring, If it wasn’t it would be gambling”   -Unknown

The second this game gets fun, your doing something wrong.  If your looking for excitement, you have come to the wrong place.

"The public is so often whipsawed that one marvels at their
persistence in not learning their lesson.
Eventually something happens that increases the power of
either the upward or the downward force and the point of
greatest resistance moves up or clown -- that is, the buying at
130 will for the first time be stronger than the selling, or the
selling at 12o be stronger than the buying. The price will break
through the old barrier or movement-limit and so on. As a rule,
there is always a crowd of traders who are short at 12o because
it looked so weak, or long at 13o because it looked so strong,
and, when the market goes against them they are forced, after a
while, either to change their minds and turn or to close out. In
either event they help to define even more clearly the price
line of least resistance. Thus the intelligent trader who has
patiently waited to determine this line will enlist the aid of
fundamental trade conditions and also of the force of the
trading of that part of the community that happened to guess
wrong and must now rectify mistakes. Such corrections tend to
push prices along the line of least resistance"


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