Throughout my years at ForexFactory, I have been a member of many threads, opened a few of my own and been a part of conversations on several different subjects, from the interactive trading, through the trade systems and a lot of stops in between.
There is always a seemingly commonality to all of these and that is the misunderstanding of the most basic market concepts that reaches past semantics and a difference of mother tongue.
These can break out into heated debates and end run, there is still a gaping hole where information could be, but emptiness and ignorance always seem to prevail.
Even with the most enlightened passes and excerpts taken from other trading sources, statistical data that is brought in from all over there is still a lot of confusion. I get it there is a lot of information available and for the Average FF member, relatively new to market and trading, new to certain ideas and ideals, following blindly in the hopes of grabbing a small share of their own.
Context!
Just because a phrase or statement relates to market, does not make it relevant in all conversations and even worse yet, the information posted may not only be inaccurate, but completely worthless rhetoric that has been grapevined throughout the pages here and at other forums.
All of the worlds problems as is trade related will not end here but I do hope to clear up some of the confusion and ignorance that runs rampant.
Lets start off with the base idea of Martingales.
Martingale is definitely a taboo around here and at a lot of other trade forums, but why?
What makes these such a terrible thing?
Why do so many people weigh in so heavily on this one seemingly simple concept?
Ill be the first to tell ya, that most people dont know JACK. Sure, theyve read something someplace, or have done the math, their math, or ran one once, or knew a guy or are just chiming in to agree with a friend but this really is the extent of the information that you will find readily available.
The assumptions made are pure speculation brought about by this same spread of grapevine ignorance. One guy says something, somebody else adds a piece to it, by the time it hits your eyes and ears, and is of no more value by application to trading than my grandmothers banana bread recipe.
What is most amusing is those who show up and spout that they would never use a martingale system and yet if you look at their trade explorer youd see how many positions they have in a single instrument the historical trades taken and how they actually stack up but Nooooooooooooooo, theyd never be so stupid as to use a MARTINGALE!!
Its actually laughable.
Other perspectives range from a single trade taken, held for ever, and cashed in just above square with swaps to consistent stop loss losers with an equity curve that is a 45 degree angle from top left to bottom right of their trade explorer, (these are the people who mandate stop loss and take profits but cannot seem to grasp the overall concept of when).
No, not all traders that have an opinion of Martingale Systems are Market Losers but because somebody is profitable in a single methodology, doesnt necessarily make them an authority on all other related subjects...even if they can back up their statements with statistics and quotes and big words that sound and look really important
Ya wanna know why?
Because there are an infinite amount of ways to apply a Martingale concept to your specific trading and the information being passed may not be relevant.
Is the fuel economy of a 1998 Plymouth Voyager the same as a 2004 GM Safari?
Yeah I dont know either.
It takes a grand amount of willing ignorance to equate all things to being exactly the same especially if youve shown up in a quest for information and the only information you can find, is based on a single idea.
There is always a seemingly commonality to all of these and that is the misunderstanding of the most basic market concepts that reaches past semantics and a difference of mother tongue.
These can break out into heated debates and end run, there is still a gaping hole where information could be, but emptiness and ignorance always seem to prevail.
Even with the most enlightened passes and excerpts taken from other trading sources, statistical data that is brought in from all over there is still a lot of confusion. I get it there is a lot of information available and for the Average FF member, relatively new to market and trading, new to certain ideas and ideals, following blindly in the hopes of grabbing a small share of their own.
Context!
Just because a phrase or statement relates to market, does not make it relevant in all conversations and even worse yet, the information posted may not only be inaccurate, but completely worthless rhetoric that has been grapevined throughout the pages here and at other forums.
All of the worlds problems as is trade related will not end here but I do hope to clear up some of the confusion and ignorance that runs rampant.
Lets start off with the base idea of Martingales.
Martingale is definitely a taboo around here and at a lot of other trade forums, but why?
What makes these such a terrible thing?
Why do so many people weigh in so heavily on this one seemingly simple concept?
Ill be the first to tell ya, that most people dont know JACK. Sure, theyve read something someplace, or have done the math, their math, or ran one once, or knew a guy or are just chiming in to agree with a friend but this really is the extent of the information that you will find readily available.
The assumptions made are pure speculation brought about by this same spread of grapevine ignorance. One guy says something, somebody else adds a piece to it, by the time it hits your eyes and ears, and is of no more value by application to trading than my grandmothers banana bread recipe.
What is most amusing is those who show up and spout that they would never use a martingale system and yet if you look at their trade explorer youd see how many positions they have in a single instrument the historical trades taken and how they actually stack up but Nooooooooooooooo, theyd never be so stupid as to use a MARTINGALE!!
Its actually laughable.
Other perspectives range from a single trade taken, held for ever, and cashed in just above square with swaps to consistent stop loss losers with an equity curve that is a 45 degree angle from top left to bottom right of their trade explorer, (these are the people who mandate stop loss and take profits but cannot seem to grasp the overall concept of when).
No, not all traders that have an opinion of Martingale Systems are Market Losers but because somebody is profitable in a single methodology, doesnt necessarily make them an authority on all other related subjects...even if they can back up their statements with statistics and quotes and big words that sound and look really important
Ya wanna know why?
Because there are an infinite amount of ways to apply a Martingale concept to your specific trading and the information being passed may not be relevant.
Is the fuel economy of a 1998 Plymouth Voyager the same as a 2004 GM Safari?
Yeah I dont know either.
It takes a grand amount of willing ignorance to equate all things to being exactly the same especially if youve shown up in a quest for information and the only information you can find, is based on a single idea.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!