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nwinski wrote:
>
> Subject: Re: Trading Psychology
> Date: Fri, 30 Jan 1998 13:47:32 -0600
> From: "TC & Mark" <mseflin@xxxxxxxxxxxxx>
> To: <nwinski@xxxxxxxxxxxxxxx>
>
> Norman,
>
> There isn't JUST ONE collective Perception...there are MANY
> perceptions !!!!
NW: Mark, in any given market, the sum total of all traders's
perceptions is one collective perception which, at any given moment,
creates the price and hence the reality of the marketplace. Every
trader's account is credited or debited based on this. That is THE
REALITY. It doesn't matter what any individual thinks is going on with
any one market. If that perception is not in harmony with the collective
perception of the market, that trader will be punished by losing money.
These are not my personal beliefs anymore than the law of gravity
belongs to Newton. This is the way of the market. But, perhaps this is
all wrong given that it is coming from someone who you claim has a 70
IQ. On that last point, I think you may be on to something. Every since
graduating from my third rate alma matar college, I have been working
hard at dumbing down so I could become a better trader. Since arriving
on the CBOE trading floor in
1975, I came to the conclusion that trading genius lies in the brain of
a 4 or 5 year old child. More recently, I had the opportunity to test
this hypothesis and was pleasantly surprised when my then 4 1/2 year old
son produced some extrordinary trading results, i.e 62% winning trades
with a
2.41 to 1 win/loss ratio, and more than $7,000 in profit in about ten
trading days. Please keep in mind that for the purpose of this
experiment I provided little or no instruction to him on the markets. I
merely ask him to look at some charts and indicate up, down, sideways,
or that he didn't know. I then took the markets for which he had an up
or down opinion and did a paper trade based on the close price of that
day, i.e
bot if he said up or sold if he said down. So if IQ measures one's
intelligence in relation to one's age, I can see how it would be helpful
for me to perhaps reduce my IQ to about 25 in order to become a more
succesful trader. I thank you for your assessment of me being at an 70
IQ , as this shows that I have been making steady progress in reducing
my IQ.
Dumbingly,
Norman
There are stock perceptions...there are future
> perceptions, there are option perceptions, there are intra-day
> perceptions, there are long-term investment perceptions...so
> different realities are created...ergo buy and sell orders based on
> each ones perceptions and interpretation...ergo market movement.
>
> | I will elaborate. The collective Perception of the trading
> community IS
> | the reality of the market.
> ===============================================
> If your Astro work is "talking" to you then I have a doctor I'd like
> to introduce you to. Astro work doesn't talk, but you do create
> interpretations based on that "belief" system...which is human
> based....does not exist in the Universe...only as a human
> conversation.
>
> I'm happy that you made $$$$.
>
> If you are saying that every person who got the information regarding
> earnings being higher than expected, and each one created a similar
> perception/interpretation and acted on that perception, by buying the
> stock...and a reality was created...then I got no problem.
>
> Given some of your post that I have read, I figured you for a
> intelligent person...and now I have my doubts. Your final
> sentence...is on the level of a person with a IQ of less than 70. So
> for you...unless someone subscribes to your concepts or belief
> systems....than they should just pack up there computers, brokerage
> accounts and find something else to go do...since "The Trading World
> According to Norman" they won't be successful?
>
> "Anyone who significantly differs with this concept is doomed as
> | a trader. "
>
> Philosophically,
>
> Mark
|