The recent passing of Donald Rumsfeld caused me to reflect again on his (in)famous "known knowns, known unknowns and unknown unknowns" speech (see here), but the truth is that we always have such instances possible in the markets, at any time.
Showing posts with label Brexit. Show all posts
Showing posts with label Brexit. Show all posts
Monday, July 19, 2021
Saturday, June 10, 2017
Known unknowns and unknown unknowns
As traders, we have to accept that we do not know what is going to happen in the future. While our chosen method would look to to profit from an 'edge', based on some form of probability or odds (e.g. trends tend to persist until they don't), we should never approach the markets with an attitude that we can be sure what will happen from one minute to the next, one day to the next, or one week to the next.
Price action in an individual stock, forex pair or commodity can change behaviour at any time.
Therefore, we must account for that possibility in our own method, our mindset and our attitude towards risk.
Price action in an individual stock, forex pair or commodity can change behaviour at any time.
Therefore, we must account for that possibility in our own method, our mindset and our attitude towards risk.
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