Saturday, September 29, 2007

Riding the Bus

I was in the shower this morning and I came up with an analogy on how I view trading.


I call it the bus analogy. 


Say you want to go from LA to NY riding the bus. You go to the bus stop and wait for the bus to come by. The thing about this bus is, it won't stop for you. It'll keep driving by so you need to jump on when you have an opportunity to get on.


Now, the bus isn't being driven by one person. Everyone on the bus is deciding which way we should go to get to NY from LA. When the bus decides that it wants to go back home to LA, why would anyone want to go back when their so set on going to NY? Get off the bus and wait for the next ride to come. Get on when you can again, and see how far it can take you before you'll have to get off and wait for the next bus.


At the same time once the bus starts turning around to get back, you don't want to be forced to travel more ground so you get off at the closest bus stop and wait for a new one to come. Doing this over and over, you'll eventually get to NY. It'll take some time but if you keep looking forward and waiting for the next bus to come by as you know it will since there are busses all over and at the same get off once it starts going the wrong way, you'll get to your destination.


There was more I wanted to say but I forgot some of it as I was trying to write out what I remembered. If it comes to me I'll edit this.

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