Tuesday, July 3, 2012

don't play their game


it is true that the trading challenge is very difficult indeed.
almost impossible but not impossible.
while "Trade with the operator robot not against him" sounds right i beg to differ.
working against or with the "robot" are actually similar things.
(i didn't say same but similar).
the "robots" (read operators) don't let anyone guess what they are going to do, how, how much and when.
at times, they themselves don't know.
their algorithms decide that on realtime info.
so, if you knew what they are going to do only then you can be "with" them.
but herein lies the paradox.
if you couldn't know how you went "against" them, how could you go "with" them?
or
if you can go "with" them, why did you not spot their game and avoid going "against" them.
whatever you do the robot will catch you on the wrong foot. 
fortunately, there is a silver lining (there always has to be)!
instead of worrying about being "with" or "against" them, just ensure one thing - 'don't play their game'
in other words - trade as if they were not there!
trade without reacting to them.
play "with" law of probability, law of averages.
don't let the market fluctuations dictate and skew your trading decisions.
stick to one or two or few principles, hold the hand of probability, go ahead and trade.
who can scare the trader who refuses to look in the eyes of the bully?

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