One of the nice things about the markets is that you literally don’t know what will happen tomorrow. Everything’s just a probability. You may think that there’s a 95% likelihood that the “bet” you’re making will make money over the timeframe you’re putting before you get stopped out of the trade, but at the heart of it all, you’re just taking a calculated risk. That’s well and good.
Bespoke currently showed this chart last May 10,2012 showing that individual investors are actually laughing their way at the bank, for being able to not get swayed with the bullish rise of the markets, and thereby avoiding the happy bears this week.
With so many people, getting more educated about their finances and the markets, adaptability with “rigid” rules is the name of the game. Peter Brandt even talked about the worthless systems of the OHLC charts nowadays, due to the abundance of HFTs. Individual investors are getting educated. They’re not eating the crap most Wall Street advisers think they’ll blindly accept. For one thing, the 2008 financial crisis really taught a lot of individual investors and traders to mind their finances, and not listen blindly to advisers.
I think these articles illustrate one thing.
Markets change. You have to adapt with it. Seems like a lot of individual traders and investors have 🙂
– Faceless Trader