/biz/ - Business & Finance

what does the stock market dropping like this actually mean, in practical terms, to an average joe? i literally LITERALLY only care that society can still keep the grocery store stocked and the lights on, how reasonable will that be? im happy for a price reset and (potentially, but probably not because of corruption) shitty companies failing and getting bought for pennies on the dollar by new management, lower house prices, etc. lots of good things for millenials. also i don't want my parents to get WuFlu, but we all got a really bad case of the Flu over a month ago so maybe that was WuFlu and we're fine? no way to know, we just all assumed it was a really REALLY bad case of the Flu. would be cool if immune to it now.

just trying to survive, bros. we bullish on survival? food, shelter, medicine, etc?

>>17677355
the thing that really blew my mind was that, after looking at hundreds and hundreds of indicators, i realized it all really just came down to moving averages. everything comes down, in the end, to MA's, that's it. are things going up on average or down, over a small period time, a medium period of time, and a long period of time? is price or some oscillator value rising or falling, above or below its MA?

you try to go further than that and really, you're just overthinking it. everything else is just risk management which is really just setting appropriate hard stops and position sizing.

>>16816272
the real question you have to ask yourself is why do people want to own casinos so much? not be a player at the casino, but to BE the casino? that's literal gambling so why would you want to be a casino with an edge of only 1-5% in a lot of cases?

now compare that to trading where you can have not just a 52/48 edge but say a 70/30 or 80/20 edge in your favor, and can do all sorts of neat tricks like scaling out, having a longer time horizon, DCA, diversification, hedging, etc. where not only are the odds heavily in your favor, but you can also have 2:1, 3:1 etc odds (if you win you win 2 or 3 but when you lose you only lose 1, and you win more often than you lose). hell one of the most common ideas in trading is that you shoot for a 2:1 odds on every trade with a 50% win rate, literally only right half the time. you could be right only 34% of the time and break even, not even losing money (win 2, then lose 1 twice).

i just don't consider that gambling compared to the double or nothing shit you meme penny stock traders try to fuck around with. the best comparison for a good edge is that you get to be the casino instead of the player, and the house always wins in the long run.

>>16653719
the fucked up thing is that before i was ever making real money in the stock market, i just loved the game of it. i loved trying to predict the future for every candle, to try and find a way to reliably predict the future, and how far. how to see when the trend started to turn around.

literally just look at any stock on any random day, start from the open with the pre market information, and using whatever indicators you want, try to decide on each individual candle whether it's going up or down, or whether you don't know (and thus you would wait and not trade). to consider what positions you might be in at any given time, and what decisions you would make on each individual candle. try playing that game, it's fun. consider what strategy you could use to improve your odds, how you might change how you deal with risk and reward, scaling out or in, etc.

the stock market to me resembles magic: the gathering a lot. every strategy is a different deck archetype and pretty much all of them can get you to mythic rank, but there is a tier list and so some are better than others and there is a metagame. all of these different "decks" are in play at all times, and winning games is the equivalent of completing a successful trade. maybe the game is really just one game that is a total of all of your gains and losses over a period of time, or to date. there are super aggressive scalpers and there are control decks who hold positions for months if not years. there are midrange decks that swing trade. it's very interesting, i stopped playing most video games shortly after getting hooked on stocks, and honestly believe that even if i never traded with real money for the rest of my life, i'd still probably do demo account because it's just so fun and fascinating to play. it's so simple, just buy low sell high or the reverse with shorting, but there is such an extreme level of depth of strategy beyond that simplicity. a really good thing for any serious trader to ponder.