Topic-icon Understand what your indicators are telling you

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7 years 5 months ago #6038 by Ultimate-strategy
Understand what your indicators are telling you was created by Ultimate-strategy
To trade successfully, you need to have a full understanding of what your indicators are telling you. The following story best illustrated this point.

A young indian boy was accepted at Harvard. He left the reservation.
He graduated at the top of his class. He was hired by a prestigious brokerage house on Wall street.
Over the next few years, he became the wiz kid, making millions of dollars.
Then one day he got a call from his tribe. They wanted him to come back and be chief. His herritage overode his desire for fortune, and he went back to the reservation. The first day as chief, all the elders of the tribe came into his tent and asked the important question, "How much wood should we collect for the winter?" Because he had no earthly idea, he told them he would have a answer for them in an hour.
After all the elders filed out of his tent, he flipped open his cell phone and called the local wheather station.
He asked, "What do your indicators tell you about the coming winter?" They told him it looked pretty the same as last year.
He called the elders back into the tent and told them to collect the same amount of wood as last year plus two more weeks worth to be safe.
A few days later after they had collected the wood, he called the wheather station and asked. "Are your indicators still showing the same for the winter?" The wheather station answered that it looked as if it might be just a little bit colder then first anticipated.
The young chief called the elders back in and told them they needed to collect another two weeks worth of wood.
There was some grumbling as the elders filed back out of the tent.
A few days later, the young chief called the wheather station again and asked whether the indicators still looked the same.
The wheather station answered that it might be still a little bit colder than the last projection.
Once again the young chief called the elders bacj in and said, "This time just to be safe gather six more weeks worth of wood." There was more grumbling as the elders filed out of the tent.
A Few days later, just to be safe, the young chief called the wheather station again. "Now what are your indicators telling you?" he asked. The wheather station answered, "Oh boy, it now looks like were going to have one of the worst winters we ve ever had." With great anxiety in his voice the young chief asked, "How the heck can your computer indicators be so out of whack?" The wheather station answered, "Oh, we dont use computer indicators. We watch the indians.
The more wood they collect, the worse the winter is going to be."


This is a prime example of why an investor should always know what is incorporated in his indicators that makes them work as they do.

"Cut your losses and let your profits run"

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7 years 5 months ago #6039 by Jules-v-H
Replied by Jules-v-H on topic Understand what your indicators are telling you
Geweldig !! :laugh:

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7 years 5 months ago #6045 by Jelle
haha, briljant! Viel echt letterlijk bijna van mijn stoel van het lachen. :woohoo:

We watch the indians.

Priceless

"All right. This one time I'll let you ask me about my affairs."

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7 years 5 months ago #6089 by Jeroen
Geweldig,
Bedankt hiervoor , even gelachen voor het slapen gaan.
Maar wel duidelijk.

Jeroen

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