We are traders and masters of risk. When you become pro you stop over analysing and all you do is sit there, and wait, and wait, and wait some more until you find the perfect trade. What I am saying is that the market makes all the decisions. Our only decision is to listen, feel, and respond to the market’s siren. Always and without exception. Remember, the market never lies. It is only we who lie to ourselves.
Friday, November 29, 2013
Basektball scoring average versus risk and reward
This morning something struck my mind! I am a huge basketball fan. I am the kind of guy who's into numbers and analytics. Being a huge Michael Jordan fan throughout my earlier, I've always wondered how Jordan could possible average 30 points a game. To my astonishment, I went through some NBA statistics and found out that Jordan was able to string streaks of 40 or more points per game. He even had a 63 point game! He sometimes would have 25 points a game, but he had so many 35-40 point and this helped pad his scoring average. Some Players in the NBA average 15 points a game. Players then next time get 10 points, some nights 5 points, or even 20 points. My point here is these players were never consistent in scoring. Up and down and all around goes their scoring average. What I noticed in Jordan was that he was very consistent in averaging 30 plus points a game. What made him even a better scorer was that he shot 50% from the field. That is a high percentage in the NBA. Imagine having a 50% winning average and getting like 1:3, or 1:5 risk to reward in your trading! Its no wonder Jordan was able to become one NBA's all time scoring average leader. Trading is the same formula. Risk less and reward more.
Kevin Chung
Wednesday, November 20, 2013
Tuesday, November 19, 2013
Good time to be sitting on your hands now!
The market has been very inefficient starting this week. Any swing trading setups are not following through. A lot of instruments are going sideways. However you might be able to find some trades on the lower times frames like the 5 min. However I would not advise you to trade the lower time frames if you don't have experience and good risk management.
Sunday, November 17, 2013
Thursday, November 14, 2013
Wednesday, November 13, 2013
Monday, November 11, 2013
Sunday, November 10, 2013
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