/biz/ - Business & Finance

That's not exactly true.

9/10ths of what it takes is practice.

The last part is not to get emotional.

>>1198553
>>1198647
>muh psychology
If psychology was the biggest problem, then how come that algorithmic traders are just as unsuccessful as the rest?

>>1198553
read a macro economics text book...

>>1198553
no, it is complete bollocks that people try to blame when they lose money and don't want to face the reality that they've got no inherent edge in the market in the first place

having an edge is key, sensible risk management and psychology can help but without an edge you're screwed

for example you can get your mind into whatever state you like, play with whatever money management rules you like but you'll still lose on a roulette table in the long run and the reason is simply because you've got no edge

>>1198672
>If psychology was the biggest problem, then how come that algorithmic traders are just as unsuccessful as the rest?

Because algorithmic trading is psychology. It's BS, but it works, because people believe in it. The traders see the pattern and trade according to it. It's a brilliant scam and self-fulfilling prophecy.

Now if the stocks would actually represent company value it wouldn't be psychology, but stock prices are mostly based on what people speculate/estimate.

>>1198858
>Because algorithmic trading is psychology. It's BS, but it works, because people believe in it. The traders see the pattern and trade according to it. It's a brilliant scam and self-fulfilling prophecy.

you realize your sentence makes no sense at all

>>1198858
This is why I look for the price to book value. I fish for companies that are trading for less than their intrinsic value, and evaluate why and what can be implemented for recovery towards the industry PE ratio.
What you really need is knowledge. Know what the market cap is, know what a low float stock is, know what dilution and warrants are, know how to find Press Releases, know the stages of a company and product and which "improvements" are "red herrings", read boards but understand almost everything is embillished. Compare companies in the same sector and know how to find an underdog, or know when the underdog is that way for a reason. Understand how the stock chart may decieve you if you analyze a few years back through share restructuring. Identify the retards on message boards. Know when to be relentless and when to be forgiving.
Hope something in here can help.

I'm reading Mastery by Robert Greene.
Also reading The Ascent of Money and plan to read Trumps book.

Read "Fooled by Randomness"

Don't fall for the trading meme

>>1199466
>markets are perfectly efficient
wew