Příspěvky od razmjou

See money management as insurance and a cost of doing business

It is all about calculating probabilities and making sure they work for you and not against you

The power of the market can overcome even the most experienced of market participants

market is a volatile, powerful and unpredictable place

The goal is to enjoy the process of trading

6 Trading Risks 1. Trade risk 2. Market risk 3. Margin risk 4. Liquidity risk 5. Overnight risk 6. Volatility risk

positive psychological
Happiness
Acceptance
Anticipation
Pride
Appreciation
Confidence

negative psychological
Regret
Anxiety
Blame
Dread
Anger
Apathy
Denial

All markets are essentially auction markets. A) There are two categories of auction markets. I) Active auction -- range develops during negotiation. 2) Passive auction -- range is already predetermined in a packaged offering. B) Active auctions can go from low to high or from high to low. In the auction process, the market will continue in the same direction in an effort to facilitate trade until the last buyer or seller has participated. C) All prices change from the previous price for a purpose, that being to satisfy the condition of the market.

All markets, although they may be structured differently (dealership, auction house, exchange market, etc.) arc nevertheless motivated by the same forces, and operate based on these basic principles. A) traders and investors should understand sound market logic so that they can extract and read market-generated information to satisfy their particular needs in every marketplace.

B) This amounts to market distinction as to price. I) prices accepted versus prices rejected C) A further distinction of the type of market activity can be made within the framework of acceptance/rejection. I) prices in a market-created opportunity which arc responded to versus prices in a market-created opportunity which arc overtaken by other initiating forces. Therefore, Price + Time; Market Acceptance (responsive or initiating) ; Transactional Vol ume ; Market Value (definition of all free markets)

Market activity generates information: A) A readable preference of variant time-price opportunities which occur at different times, at different or the same prices, at different or the same levels of volume. This is an expression of accepted, rejected or changing value by participants as a whole. I) Time-price opportunities (and hence prices) can appear with a large or small relative amount of time. a) Those time-price opportunities resulting in a large amount of time must result in large transactional volume and display market acceptance or value for both sides in that timeframe. b) Those time-price opportunities resulting in a small amount of time must result in small transactional volumc and display market rejection or unfair value for one side in that timeframe.

Market activity is an expression of participant need, triggered by: A) market-imposed timeframes B) participant time frames I) A market's volatility is dependent on the mix of long and short market-imposed and participant timeframes.

TPO time-price opportunity market's basic unit of measurement

Purpose of the marketplace: A) to facilitate trade I) a location 2) market-imposed timeframes

"fair" area where two-sided trade takes place

Marketplace advertises opportunity by offering price away from value. A) A response to this opportunity can be absent. B) A response can be present, taking advantage of the opportunity. C) A response can be opposite, overtaken by initiating activity unperceived by the marketplace at that moment. I) Activity is one which goes counter to the promotion for which the market is advertising.

Marketplace functions with: A) product B) need for product C) price D) time

Required for a marketplace: product X Need/Want for product

A free marketplace is one in which participants are voluntarily active.