Traders know less about the future than they think they do. And if the trader knows she does not know, she thinks someone else does.
It’s why you hang onto every word of woefully inaccurate CNBC pundits. It’s why you love and hate Cramer. It’s why you follow 3654 members of the Twitterati.
Sadly, it’s why you risk too much. It’s why you put all of our eggs in one basket. It’s why you won’t get rid of that losing position. It’s why you do not cut your losses. You don’t like the idea that you do not know what will happen.
The one percenter understands. She knows that she does not know. Rather than trying to predict, she reacts. She understand probability. She understands risk.
Okay, so I can not predict the future. However I still make money trading stocks because I know that I do not know.
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