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Ramblings About The Financial Markets

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Free trading tips and strategies for stocks, options, commodities, and futures markets from real traders.

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What's Your Opinion On The Current Market?

Monday, 04. June 2007

The most helpful opinion you can have on the markets is to not have one. Not only will you make more money, but all the time spent forming an opinion can be saved for making profitable trading decisions and managing trades.

The movement of any market is beyond the complexity of even the most powerful super computer to analyze. Markets are commonly described as chaotic and non-linear. With this said a trader must accept probability in the world of trading. This can also be expressed as a statistical probability that you will be right and you will be wrong with a distribution between the two which defines your edge.

Assuming you are able to make money in a rising or falling market, there should be no real bias as to the direction of the market. The only concern is trading the direction that statistically gives you the best odds of making a profit. Making statistical bets over a series of trades will make profits assuming positvie expectations. Having a winning trading method isn't difficult, It's difficult following the trading method. If a method has a postive expectation and is followed with discipline, profits will follow. 


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