Jack Schwager, author of the outstanding book, “Market Wizards”, shares some great insights with us. Great traders have multitudes of approaches to markets, but there is one thing shared by all – outstanding risk control.
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His stuff is a great resource!
Amen brother.
Great vid… great for perspective… loved the joke at about the 32 min mark…. funny s:;?!
The nuance is we need volatility for returns, but once the volatility starts people freak out. Why? Because they don’t wait for the volatility to enter a new position, they are only confident during the low volatility. I do the reverse. Why? Because the weak hands are the “people” I was referring to.
Yes, with your help I’ve begun to see the need for volatility…. with the right approach our entry point increases the probabilities of taking profits as the tension between support and resistance gets triggered when the weak hands Bail or jump on due to poorly chosen entry points of the crowd mentality and emotion…. giving the astute opportunity to take what the crowds are giving them…
we seek to use volatility like using a knife cutting away from ourselves as a tool, with precision and increased skill…
The crowd uses volatility wildly, without percision…in a sense cutting towards themselves…. sepuku… they’re blind, though they think they can see…
Yep, like usual you said it well. People love profits, but they’re afraid of volatility, it’s very weird.