VEGAS TRADES GOLD IMAGE

VEGAS TRADES GOLD IMAGE

Wednesday, January 18, 2012

SCHRŐDINGER’S CAT MEETS PAVLOV’S DOG



                                     Yea, Something Like This

Many traders think [especially newer ones that start losing money] that by being in a trade the market has a 100% certainty to go in the other direction.

“Geesh, if they would just pay me a decent salary, I’d trade my hunch [and lose money of course], and they could take the other side and make millions.”

So, in a perverted way, by being in the market, the dynamics of everything has shifted to screw you. It’s there until it isn’t and you’re in it. Funny how the universe works sometimes isn’t it?

                                     Who’s Controlling Who?

At the same time, most traders are conditioned like a lab rat to technical chart indicators. People in the marketplace make the trades that get them to react to their trades. And you don’t think the dealers and large hedge funds are paying attention? [I hear the laughter in my head, I swear.]

                         I Thought This Was Supposed To Be Easy?

So, you start your trading career with 35 different things screaming at you from 5 different directions, each telling you to do this or that. Layer on top of this clusterfark the opinions of the talking heads to really play into your bias, and you got enough goin’ on in your head to keep an abnormal psychology department at the local university in business for at least 10 years.

How many times have you looked at a chart and in your heart there was nothing but dread?

“Ohhh God, c’mon man, pleeeeeeeeeze don’t get me short. OK, I’m short – see, this is what I’m talkin’ about!! For cryin’ out loud, can’t you at least give me 5 minutes in the thing before you hit my stop?”

So, while they got you comin’ and goin’ like a hamster on a running wheel, you can’t even know whether your account is dead or alive.

Now, do some fancy exponentiation of this scenario, and you have new floor traders fresh from orientation hitting the trading pit.

“I swear, I’m just gonna follow this guy. People talk and say he knows tops and bottoms. Man I hope so; I never been sooooooo lost in my life.”

“How’s it possible for this guy to be swimming in money while I lose $500 for the day? I feel like I’m on a raft out in the middle of the Atlantic Ocean trying to find the Port of New York. THAT’S IT!! No more RSI for me; nope I’m goin’ to 1 minute MACD ‘cause it worked last week once.”

Lab rat, please take your cheese; and by the way, nobody knows or cares if you are either alive or dead. To the market you are both!

Today’s Action & Wrap Up

We came into the day in “buy mode”. Our first buy signal was at 2:55 AM [Chicago time] at 1649.50. Stop was placed at 1646.00, right below the most recent low at 1646.05. At 4:20 AM [Chicago time] we got a confirmation top [discussed in the manual and Appendix IV] at 1656.50. Gain on this trade was $ 7.00 / oz.

Ka-Chingggggggggggggg!!

 [My old friend, I have missed you these last few days! Please stay awhile and make yourself comfortable.]

So, net gain on the day is $ 7.00 / oz.

                                      My Old Friend Returns

Eat your heart out Skeptic Cat. Fact is you can see the signals right on your screen. Everybody that has the algorithm can see them. You don't, I'm sorry; don’t confuse your skepticism for truth.

Have a great day everyone!

-vegas

Important Update: Today I can add. The circus job I'll put on hold.

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