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wmck6167

React Vs Predict

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Reacting vs. Predicting

 

One of the wisdom I learned from market is the attitude of changing from more predicting to more reacting toward events handling. In the past, I found that I predict and project the outcome based on my mind condition when event came to me. Sometimes it resulted in a lot of frustrations to deal with the unexpected situations occurring because I was predicting what was going to happening. After I change my attitude from more predicting to more reacting , then I found that I am more capable to face the challenges consciously. How great of the market wisdom is! Are you belong to a person with more react or more predict? Cheers. :missy:

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Whether we realize it ...own up to it or not ...or even strongly deny it...we as traders all react to price action (pa is any movement in price even one tick), and from our reaction to past pa we form a bias..and extend that out into the world of anticipating or predicting probable future price action. Otherwise, there is no point in taking any position. We indeed make an attempt to anticipate probable future price action by the very act of going long or short. Most just hate the word predict....tis laughable to me......:rofl: :rofl: :rofl:

 

 

 

verb

Predict

say or estimate that (a specified thing) will happen in the future or will be a consequence of something.

 

verb

Anticipate

regard as probable; expect or predict.

 

synonyms: expect, foresee, predict, be prepared for, bargain on, reckon on; More

guess or be aware of (what will happen)

 

verb

React

respond or behave in a particular way in response to something.

 

 

verb

Bias

cause to feel or show inclination or prejudice for or against someone or something.

 

verb

Forecast

 

predict or estimate (a future event or trend).

 

synonyms: predict, prophesy, prognosticate, foretell, foresee, forewarn of

 

More noun

noun: forecast; plural noun: forecasts

 

a prediction or estimate of future events, especially coming weather or a financial trend.

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very detail explain the related words of predict and react.

I forgot to put the note. The event here I meant is life event, not the events related to stock or financial market.

Here we are, the interactions start: pure predict vs pure react. Then the hidden dimensions start (it looks like Quantum), predict based on react or react based on predict, predict based on bias, predict based on history information, react based on mind condition, react based on fear, react based on greed....

What a fun world! ...:crap:

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It is quite common to hear someone say "This stock has got to go up!" or "This stock has got to go down!" In such cases, the trader has made a prediction that the stock should move a certain way based on research or analysis and is ignoring the facts about what the stock's price is saying right now.

 

Certain strategies require that a price movement is faded (where a position is accumulated as the price moves against the trader), but for most individual traders who have small positions there is little need to fade the market predicting that it will reverse at any moment. Traders, especially short-term traders, are far better off actually waiting for price to confirm a reversal.

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