Fundamental and technical differences
Trading is all about statistics
My statistics professor Vanderman teach me like this,
Q: What is the probability that tomorrow will rain?
A : Theoretically, the answer to this question was 50/50 or 50% of rain.
How to answer this question by using an analysis based on certain conditions?for example
Q: What is the probability that tomorrow it will rain if this month is the month of December?
A : Possible answers could still be 50% but may be 50 +% since December is the rainy season.
Then he asked again,
Q : What is the probability that tomorrow it will rain if this month DES and this rainy day?
A : I think the answer can be increased significantly to 60-70%
My statistics professor Vanderman teach me like this,
Q: What is the probability that tomorrow will rain?
A : Theoretically, the answer to this question was 50/50 or 50% of rain.
How to answer this question by using an analysis based on certain conditions?for example
Q: What is the probability that tomorrow it will rain if this month is the month of December?
A : Possible answers could still be 50% but may be 50 +% since December is the rainy season.
Then he asked again,
Q : What is the probability that tomorrow it will rain if this month DES and this rainy day?
A : I think the answer can be increased significantly to 60-70%
Calculating the probability is a technical problem, knowing when the rainy season and whether today's rain / no is the fundamental problem. So, the indicators we can only give 50/50 chance of winning, only and only if we know how to read the global market situation we could add a few percent probability confidence in our victory in the capital markets. Big boys have a fundamental knowledge plus with insider information that is accurate, they use this knowledge to play the market, how to do this? just read my next article.
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