Sunday 21 October 2012

Predicting Any Moves (Bullet or 90m+30s)

If one is able to predict the next market move correctly 90% of the times, then it is exceedingly probable that the said person will stake much more of his capital than a person who is unsure of where the markets are headed. Let’s say you are on a road trip and you encounter a zigzag winding road. A person who is unfamiliar with the road will obviously slow down and be much more circumspect with his driving. Whereas, the one who has driven the same road a number of times will have a feeling of exaggerated confidence in his ability to traverse the road with a considerable amount of ease. So, the problem is that this person drives faster than he should and secondly he thinks that he knows where exactly the road will turn next. Both these actions of his will leave him in serious danger of harm because if he encounters one wrong turn, then he may not be able to negotiate it due to the speed and over confidence with which he is driving.

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