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The last two comments on this thread point to the lesson we should all
learn (as traders) from the LTCM debacle. Trade the market as it is, not
as you want it to be. LTCM and the copycats (many of whom actually
preceded LTCM -- arbitrage has been practiced by the investment banks
for decades) used highly sophisticated analyses to justify their
positions, and got blown away when the market wouldn't behave as
desired.
Individual traders run the same risk every day. The hardest lesson I am
learning (unfortunately, I don't feel right using the past tense yet) is
to let myself be a little wrong, so I stop myself from being GREATLY
wrong...
My $.02
DanG
OatTrader@xxxxxxx wrote:
>
> RT's,
>
> When I test a method, I do not take the norm of T-Bonds, Coffee and the
> S&P. I feel that if the method will work on Corn and Oats, markets that
> normally do not have much of a move, I am on the right track. Something can be
> said of making money from markets that are not traded by the masses. If a
> method only works on wide swinging ranges, when will you know when that event
> is over?
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