10 Minute Read

Tackle Today: When genius failed

December 4, 2019

By | No Comments

Tackle Today: When genius failed (Photo by Philipp Sewing on Unsplash)

« Stock market ≠ Physics »

The main purpose of Physics is to understand how the Universe behaves. Through centuries, it turned out to be one of the most fundamental scientific disciplines, studying the matter, its motion, energy and force, and its behavior through space and time.

Then we have economists, hedge fund managers, financiers, wealth managers, traders, investors and also the casual Indiana Joneses, adventurers of the markets seeking hidden treasures in the deeps of the forest. The deterministic laws of physics look very attractive to them from the perspective that a certain interaction can produce a certain outcome that is 100% predictable through calculations. What a luxury.

Once upon a time, there was this guy named Isaac Newton that way back in the spring of 1720, owned shares in the South Sea Company, the hottest stock in England at that time. Many would think that because he was a genius in Physics, his knowledge and wisdom would necessarily apply to the stock market, right?

“I can calculate the motion of heavenly bodies, but not the madness of people.”

RIP Sir Isaac Newton.

Although most of the market participants like to play Procrustes, forcing their investment or economic theories to fit into their spreadsheet no matter what, stretching them or cutting off their legs, we don’t have the luxury of predicting the motion of financial market bodies through complex calculations. The stock market is pure human behavior at least until we get run over by AI. Then, and only then, we can rejoice in pure algorithmic behavior led by quantum paranoic computers.

Until then, we will continue to envy physicists.

Chart of the Day

When genius failed

South Sea Stock and Isaac Newton: December 1718 - December 1721

Video of the day

Trading Concept Check: Position Sizing

Size matters when it comes to trading, position sizing properly is vitally important to the health and wellbeing of your portfolio, there is an old Wallstreet saying, there are old traders and there are bold traders, but there are no old bold traders.

Today’s line up

Tales of a Technician

Stages of Portfolio Structure

Previously I’ve discussed my mixed feelings on allowing your goals to drive portfolio structure. Today’s message expands on my thoughts. Consider this part two.

Traders Lounge 11 PM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

The Coaches Show Replay

If you missed last night’s episode where Coaches Gino Poore and Emily Muiruri talked about Bullish Retracements or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

Trading Justice Podcast

Trading Justice Episode 350: Managing Call Options

In this episode of the Trading Justice Podcast, Coaches Emily, Noah, Mark and Tim discuss how to manage call options in the Covered Call, Poor Boys Covered Call and Bear Call Spread strategies. Entering a good trade is easy while managing a trade to profit is the hard part. Listen to the episode in the player below:

Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

The Tackle Today series is brought to you by Tackle Trading.

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.

Sign up now for a 15-DAY FREE TRIAL #

Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Secrets revealed in this webinar...

How to leverage financial markets to achieve freedom

Monday, May 23rd 2022 @ 8:30 PM EST


Sorry, we missed you!
You're being redirected to the waiting list.