Since this a blog dedicated to travelers and teachers who like to make some extra buck trading, I would like to again give you a framework of expectation from this blog, the basic philosophy, and the method of trading.
I love all to visit this blog, but I particularly want you to make money knowledgeably so that you can help out your friends (In science terms – a replicable model), and also a model that can be easily taught and easily implemented.
I have heard a veteran trader say this : You pick any rule : say I will buy when it’s a full moon, and then sell in 15 days. It will make you money as long as you follow that simple rule over consistently over long period of time.
Alas, the market remains irrational as long as we remain solvent.
Since we don’t have that uninterrupted supply of money we want to first manage risk.
Today i want to just write about the philosophy of trading
Two rules (from that guy, you know who) : 1) Don’t lose money 2) Don’t forget rule number 1.
“The price is the true north star”
as a teacher or traveler – time is the most important premium we pay. So we have to make our system and keep it KISS.
Nothing else matters except one and only one thing in this system : Price
If the price is going up you buy and if it is going down you sell