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You get exactly what you want out of the market

  #3 (permalink)

North Carolina
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
Posts: 644 since Nov 2011

Okay, first I strongly advise quit reading stuff and instead focus on (1) building trading systems, (2) reading markets, (3) studying market behavior. Basically, study the markets. Second, this statement is so vague that it has no value but can easily be proven false as most people want to make a fortune or at least make enough to trade for a living and very few are able too. I made up my own saying years ago which I think has more value, "The market judges you according to your claims."

Why did I make this statement? Because I had a strong ability to predict markets but your stop loss determines your precision. Right when you use a too tight stop loss, it's like if I were to grade your answer to 4 decimal places and you got it right to say 2 decimal places. It basically states this idea relating precision and accuracy and if your precision is bounded too tight then you will always lose. On the other hand, if you want to think about something, there are global and local optimals. A lot of traders lose because they are trying to trade to the global optimal. Right without considering the locally optimum solution. I'm experimenting with a new technique: instead of trying to trade with optimal stop which is often too large let me see if I can trade with the smallest risk that I can actually trade with it. Notice also if your precision is too low then you may be accurate but your answer might not be worth anything, aka trend following.

Back to to your question, I think there are explanation for this statement. The first comes from this idea that markets provide what people want whether its food, clothing, housing, etc. There is this idea that free markets provide it most efficiently. However, markets do not provide for all needs clearly as people go without. The other explanation is this idea that some people might want excitement and so if they go into the market seeking thrills/excitement they will get that whereas if you go into the market trying to make money you will get that. But, this is clearly misses the fact most people want excitement and money. The third explanation is this idea of positive thinking. But, I think this statement may have been made in Market Wizards books -- not sure.

Now, there is a similar statement, I think Jack H. made, which was "take the market's offer". This statement does have some value. Basically, if you can predict the market or know you have a great opportunity, just take the market's offer. There is opportunity for those who are willing to take it. I like that one better too but again you can't take the market offer willy nilly either or you'll end up running your account into the ground due to trading costs. Normally you don't need to take both sides of the trade at market.

In summary, this is another senseless statement that has no value.

Last edited by tpredictor; February 5th, 2018 at 02:21 PM.
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