Hello, and welcome to my top 10 of the worse pieces of advice you hear in trading, or simple "commong knowledge" that either make me go "HAHAHA" or my brain go "AAAAAAAAAAAAAAAAAAAAAAAAAAAH".
1/ Trading is hard/easy.
You have to git gud at trading. At least learn how it works unless you already somehow knew. Everythign is relative, so for sure trading is not easier than flipping burgers or whatever. Even uneducated workers learn what they do before doing it and they have to be decent at it. Trading is not easy in the sense no brain eyes closed clic a button become instantly rich...
I can guarentee you 100% of the "legends" are just fools that got lucky with their first few trades and they end up blowing up very quickly.
Out of 50.000 people don't think a couple hundred can have 15 wins in a row in their first trades? What usually happens when someone completely ignorant gets lucky?
Trading is not hard either. It is being called the hardest job in the world, somethign so difficult every one fails.
Nah, it's super easy peasy. Just like maths at school. Easy. People hate it because they are too dumb and too lazy that's all.
Just quit eating pizza and drinking in front of tv go learn how this works backtest a strategy and apply it then you can sleep 12 hours a day and play video games the rest of the time as I do. No brain and easy. Personally, I still keep doing research and looking for more strategies in case my 2 main ones stop working for some reason, and out of boredom tbh.
2/ You cannot make money trading small moves over a few hours. That is gambling.
Haha just the usual sad person that failed hard and now make these affirmations. Ever notice how big failures and the dumbest people are totally closed to anything they do not understand? And how morons think they are always right?
Do whatever you like and works for you.
3/ Make your chart timeframe fit your trading timeframe. Daytraders should look at the 1 hour chart, scalpers the 5 minutes, investors the daily, etc.
No? NO. NO. NO. NO. Idiot.
What timeframe should you look at if you are an investor? The daily.
What timeframe should you look at if you are a daytrader? The daily.
What timeframe should you look at if you are a hfscalper? The daily.
What timeframe should you look at if you are swingtrading? The daily.
What other timeframes should you look at? The small ones. Shouldn't long term traders try to get the best entry they can if possible?
4/ No one is right all the time, you have to be willing to accept making mistakes regularly.
What? Omegalulwut? What an idiotic piece of advice. DO. NOT. MAKE. MISTAKES. EVER. If you mess up slap yourself and vow to never do this again.
There is no right or wrong. You look at the odds. You look at the risk to reward. You look at the frequency. You make your system/strategy perfect and you follow it to perfection. If the winrate is 70% you are not wrong 30% of the time, you are RIGHT 100% of the time as long as you follow that system and get 70% winners.
People are so garbage at both math and plain talking english. This is probably the reason why I keep seing this advice. Or do they actually mean it? Can't tell XD
Ignore anyone that cannot make a complete coherent sentence.
5/ RSI overbought/oversold
RSI. Relative STRENGTH index. Not Relative weakness index. Not Relative "oh la la we went up alot we soon go down". Not Relative overbought index.
Relative STREEEEEEEEENGHT index. SSSSSTRENGTH. S-T-R-E-N-G-T-H. As in strong. Shows how strong a trend is.
What kind of complete inbred that should end themselves invented the idea of selling something because the trend is strong? Or buying something weak?
Saw the "overbought oversold signal recommendation" on Fidelity. Here. www.fidelity.com/lea...-indicator-guide/RSI
They point to when the RSI is at extremes and show "see? It went down". In 1 case after getting into overbought/sold conditions it goes up 10% before retracing, on the other case it dump 5000000000% before bouncing. And they actually have the audacity to display this on their "education" page? That example? But at least they are careful and not literally telling people to trade based off that. They are just showing pictures to get them excited right? Oh if you sell at the very top and buy at the very bottom you make 69% kappa.
Just using the words "oversold" and "overbought". Stupid as hell. If water becomes super scarce I can guarentee you it will get "overbought" very fast. But what moron would call that overbought? If anything it is not bought enough. Underbought.
What works is (on the daily chart) RSI divergence. Strong trend getting weaker ==> that's when you consider selling or buying. Not when it is strong as hell.
6/ If you bought Amazon back in 2001 you would be this rich.
Better odds at the roulette table. At least there are some rules. Not buy "random thing" at "random time" AND sell it "at random time".
Where do you enter and why? When do you exit?
7/ “Letting losses run is the most serious mistake made by most investors.”
Absolutely wrong. If they just let their losers run wild they are not investors but cattle. Meant to get ripped to pieces by predators and sustain them.
8/ "We dipped 30% today as the weak hands got shaken out"
Similar to the previous point. Also, anyone using the term "weak hand" non ironically should get a rope.
9/ "So what is a hot investment now?"
Unless you are asking this question to know what to sell, get a rope.
10/ "We are down 30% and they are calling for zero. I am buying aggressively because that is what they said last time and we went up."
Roooooope.
1/ Trading is hard/easy.
You have to git gud at trading. At least learn how it works unless you already somehow knew. Everythign is relative, so for sure trading is not easier than flipping burgers or whatever. Even uneducated workers learn what they do before doing it and they have to be decent at it. Trading is not easy in the sense no brain eyes closed clic a button become instantly rich...
I can guarentee you 100% of the "legends" are just fools that got lucky with their first few trades and they end up blowing up very quickly.
Out of 50.000 people don't think a couple hundred can have 15 wins in a row in their first trades? What usually happens when someone completely ignorant gets lucky?
Trading is not hard either. It is being called the hardest job in the world, somethign so difficult every one fails.
Nah, it's super easy peasy. Just like maths at school. Easy. People hate it because they are too dumb and too lazy that's all.
Just quit eating pizza and drinking in front of tv go learn how this works backtest a strategy and apply it then you can sleep 12 hours a day and play video games the rest of the time as I do. No brain and easy. Personally, I still keep doing research and looking for more strategies in case my 2 main ones stop working for some reason, and out of boredom tbh.
2/ You cannot make money trading small moves over a few hours. That is gambling.
Haha just the usual sad person that failed hard and now make these affirmations. Ever notice how big failures and the dumbest people are totally closed to anything they do not understand? And how morons think they are always right?
Do whatever you like and works for you.
3/ Make your chart timeframe fit your trading timeframe. Daytraders should look at the 1 hour chart, scalpers the 5 minutes, investors the daily, etc.
No? NO. NO. NO. NO. Idiot.
What timeframe should you look at if you are an investor? The daily.
What timeframe should you look at if you are a daytrader? The daily.
What timeframe should you look at if you are a hfscalper? The daily.
What timeframe should you look at if you are swingtrading? The daily.
What other timeframes should you look at? The small ones. Shouldn't long term traders try to get the best entry they can if possible?
4/ No one is right all the time, you have to be willing to accept making mistakes regularly.
What? Omegalulwut? What an idiotic piece of advice. DO. NOT. MAKE. MISTAKES. EVER. If you mess up slap yourself and vow to never do this again.
There is no right or wrong. You look at the odds. You look at the risk to reward. You look at the frequency. You make your system/strategy perfect and you follow it to perfection. If the winrate is 70% you are not wrong 30% of the time, you are RIGHT 100% of the time as long as you follow that system and get 70% winners.
People are so garbage at both math and plain talking english. This is probably the reason why I keep seing this advice. Or do they actually mean it? Can't tell XD
Ignore anyone that cannot make a complete coherent sentence.
5/ RSI overbought/oversold
RSI. Relative STRENGTH index. Not Relative weakness index. Not Relative "oh la la we went up alot we soon go down". Not Relative overbought index.
Relative STREEEEEEEEENGHT index. SSSSSTRENGTH. S-T-R-E-N-G-T-H. As in strong. Shows how strong a trend is.
What kind of complete inbred that should end themselves invented the idea of selling something because the trend is strong? Or buying something weak?
Saw the "overbought oversold signal recommendation" on Fidelity. Here. www.fidelity.com/lea...-indicator-guide/RSI
They point to when the RSI is at extremes and show "see? It went down". In 1 case after getting into overbought/sold conditions it goes up 10% before retracing, on the other case it dump 5000000000% before bouncing. And they actually have the audacity to display this on their "education" page? That example? But at least they are careful and not literally telling people to trade based off that. They are just showing pictures to get them excited right? Oh if you sell at the very top and buy at the very bottom you make 69% kappa.
Just using the words "oversold" and "overbought". Stupid as hell. If water becomes super scarce I can guarentee you it will get "overbought" very fast. But what moron would call that overbought? If anything it is not bought enough. Underbought.
What works is (on the daily chart) RSI divergence. Strong trend getting weaker ==> that's when you consider selling or buying. Not when it is strong as hell.
6/ If you bought Amazon back in 2001 you would be this rich.
Better odds at the roulette table. At least there are some rules. Not buy "random thing" at "random time" AND sell it "at random time".
Where do you enter and why? When do you exit?
7/ “Letting losses run is the most serious mistake made by most investors.”
Absolutely wrong. If they just let their losers run wild they are not investors but cattle. Meant to get ripped to pieces by predators and sustain them.
8/ "We dipped 30% today as the weak hands got shaken out"
Similar to the previous point. Also, anyone using the term "weak hand" non ironically should get a rope.
9/ "So what is a hot investment now?"
Unless you are asking this question to know what to sell, get a rope.
10/ "We are down 30% and they are calling for zero. I am buying aggressively because that is what they said last time and we went up."
Roooooope.
Comment:
Wupsy, I think my finger slipped
