Today has been interesting I have been learning about the Greater Fool Theory where a person trades in such a way that they hope that there are greater fools than themselves in the market - not a good idea the market soon spits out fools unless they have limitless pockets.
In contrast I have also been learning about a Hound of the Baskervilles signal when something you expect to happen doesn't as in Sherlock Holmes' case when the dog should have barked but didn't thereby revealing that it was an inside job -when this signal occurs you should immediately trade the opposite of what you were doing which normally is not recommended jumping ship is normally a recipe for disaster - although recognising such a signal is not something I could do at the moment
So to begin with I will definitely try to avoid the Greater Fool Theory and will not be seeking out the Hound signal either
Back to studying I think .................
Is there some sort of middle ground such as a mewing cat or something? Ha ha!! Told you i'd be no help : -D
ReplyDeleteYou do help by making sure I continue to post daily and in order to post I need to do something to advance my learning each day and that's good discipline for trading so when I make my millions it will be down to you - just in case anyone else is reading I don't expect to make millions or even one million (although a girl can dream) but I would like to pay off my mortgage - as for mewing cats I haven't come across one yet but you never know there are a lot of animals about in the markets with all these bulls and bears :)
ReplyDeleteAbsolutely! Not sure its always an inside job, but I was taught that a failed signal is just as important an indicator as a fulfilled signal...
ReplyDeleteand as for cats ... have you come across the Dead Cat Bounce yet? And you know how much I love cats, so no, I'm not kidding! :) :) :)
ha love it! Shall look forward to the dead cat bounce installment next.
ReplyDeleteAm glad to see that some of us have posted today.....hee hee!!
I have not come across the dead cat bouncing or otherwise so something else added to my research list it is getting longer rather than shorter despite doing some each day
ReplyDelete