While "quantum mechanics" is not necessarily a household term,
chances are that it is "emini futures" that you have never heard about,
so let me explain the latter first.
Emini futures, or simply eminis, are smaller-sized contracts of "full-grown" futures contracts that have been around for a few decades already. Unlike their "bigger brothers" that have been traded on physical exchanges, eminis have always been traded electronically, solely via computer networks, thus allowing virtually everyone with access to the Internet to buy and sell those popular trading instruments from the comfort of their homes or home based offices. It's probably easy to guess that "e" in their name stands for "electronic."
Eminis are particularly popular among day traders, that is, the traders who never hold their positions overnight. This is so because day trading emini futures does not require you to have a large capital to risk, and thus even those with modest means can make money trading eminis.
Quantum mechanics is a fundamental physical theory, perhaps the most fundamental theory of modern physical science. It is also undoubtedly a very successful theory. Without it, even though you may not realize that, you would not be able to read this document. The heart of the computer that you are using to read it, the microprocessor, would not have been possible without advances in solid state physics and those advances would not have been possible without quantum mechanics. In fact, the modern computer is probably the best practical evidence that the foundations of quantum mechanics are very sound. But no physicist really doubts it these days.
Quantum mechanics came of age about 80 years ago after nearly 30 years of intense research in the microscopic realm. Already 80 years ago the mathematical formalism of quantum mechanics was essentially known as well as it is now and only more or less relevant details have been added to it since then. It is this formalism that makes quantum mechanics so successful as without it, it would be impossible to explain or predict physical phenomena with sufficient accuracy not to mention to design things like transistors or microprocessors.
However, despite its tremendous practical success and fabulous technological applications, quantum mechanics has some serious problem. This problem is that quantum mechanics still does not have a satisfying interpretation that everyone would agree on. To put it in the words of Richard Feynman, a physics Nobel laureate, "I can safely say that nobody understands quantum mechanics." There is more than one interpretation of quantum mechanics, more than one way of interpreting what the mathematical formalism of quantum mechanics tells us and how we should correctly understand it. Now, these abundance of interpretations (at least 3 seriously competing candidates) might have been a problem, had it not been for a very pragmatic approach of the majority of physicists which can be expressed simply as "shut up and calculate." Indeed, since quantum mechanics has been proven so widely successful, why bother with the subtler aspect of it, why bother with the details of what its formalism means when we can continue making practical advances by simply applying it.
Now, what does it have in common with trading? Actually a lot. It tells you that you don't need to know everything or be sure you do to be able to apply things successfully.
Maybe, all you really need to do, to paraphrase the description of the approach most physicsts adhere to when it comes to quantum mechanics, is "shut up and trade." And ultimately that may be more important than the most sophisticated of analyses that you can possibly come up with to figure out what the market is trying to do. You may never be able to do this with total certainty and perhaps even less so with total satisfaction, but as long as you trust your trading techniques, as long as you know that they work and are based on sound ideas, you simply need to keep trading and the good results are bound to follow.
It is important to trade frequently, preferably every day. You want to take as many trades as are possible and warranted by your strategies in order to practice and remain in good form, at least on a simulator. You don't need to take that many trades in your real account, but you will see that taking 10-15 trades per trading session without compromising the quality of your performance is absolutely feasible. The longer you trade during a day, the more comfortable you feel and the more likely you are to do better, so even if you started with a loser or two, don't give up as things are likely to improve as with time you will be getting into the zone.
The staying power that I am talking about here is also very important in gambling, where sometimes it can make you or break you. As in trading, where the optimal strategy will never be known due to the complexity of the markets, the optimal strategy in some complex card games, such as Texas Hold'em, is not known either and what a player uses is the best he could come up with. However, this is usually good enough provided he is able to withstand drawdowns, to stay long enough in the game to accumulate enough winning hands not only to offset any losing hands that have happened to him, but also to produce profits.
Article Source: http://EzineArticles.com/2347422
Emini futures, or simply eminis, are smaller-sized contracts of "full-grown" futures contracts that have been around for a few decades already. Unlike their "bigger brothers" that have been traded on physical exchanges, eminis have always been traded electronically, solely via computer networks, thus allowing virtually everyone with access to the Internet to buy and sell those popular trading instruments from the comfort of their homes or home based offices. It's probably easy to guess that "e" in their name stands for "electronic."
Eminis are particularly popular among day traders, that is, the traders who never hold their positions overnight. This is so because day trading emini futures does not require you to have a large capital to risk, and thus even those with modest means can make money trading eminis.
Quantum mechanics is a fundamental physical theory, perhaps the most fundamental theory of modern physical science. It is also undoubtedly a very successful theory. Without it, even though you may not realize that, you would not be able to read this document. The heart of the computer that you are using to read it, the microprocessor, would not have been possible without advances in solid state physics and those advances would not have been possible without quantum mechanics. In fact, the modern computer is probably the best practical evidence that the foundations of quantum mechanics are very sound. But no physicist really doubts it these days.
Quantum mechanics came of age about 80 years ago after nearly 30 years of intense research in the microscopic realm. Already 80 years ago the mathematical formalism of quantum mechanics was essentially known as well as it is now and only more or less relevant details have been added to it since then. It is this formalism that makes quantum mechanics so successful as without it, it would be impossible to explain or predict physical phenomena with sufficient accuracy not to mention to design things like transistors or microprocessors.
However, despite its tremendous practical success and fabulous technological applications, quantum mechanics has some serious problem. This problem is that quantum mechanics still does not have a satisfying interpretation that everyone would agree on. To put it in the words of Richard Feynman, a physics Nobel laureate, "I can safely say that nobody understands quantum mechanics." There is more than one interpretation of quantum mechanics, more than one way of interpreting what the mathematical formalism of quantum mechanics tells us and how we should correctly understand it. Now, these abundance of interpretations (at least 3 seriously competing candidates) might have been a problem, had it not been for a very pragmatic approach of the majority of physicists which can be expressed simply as "shut up and calculate." Indeed, since quantum mechanics has been proven so widely successful, why bother with the subtler aspect of it, why bother with the details of what its formalism means when we can continue making practical advances by simply applying it.
Now, what does it have in common with trading? Actually a lot. It tells you that you don't need to know everything or be sure you do to be able to apply things successfully.
Maybe, all you really need to do, to paraphrase the description of the approach most physicsts adhere to when it comes to quantum mechanics, is "shut up and trade." And ultimately that may be more important than the most sophisticated of analyses that you can possibly come up with to figure out what the market is trying to do. You may never be able to do this with total certainty and perhaps even less so with total satisfaction, but as long as you trust your trading techniques, as long as you know that they work and are based on sound ideas, you simply need to keep trading and the good results are bound to follow.
It is important to trade frequently, preferably every day. You want to take as many trades as are possible and warranted by your strategies in order to practice and remain in good form, at least on a simulator. You don't need to take that many trades in your real account, but you will see that taking 10-15 trades per trading session without compromising the quality of your performance is absolutely feasible. The longer you trade during a day, the more comfortable you feel and the more likely you are to do better, so even if you started with a loser or two, don't give up as things are likely to improve as with time you will be getting into the zone.
The staying power that I am talking about here is also very important in gambling, where sometimes it can make you or break you. As in trading, where the optimal strategy will never be known due to the complexity of the markets, the optimal strategy in some complex card games, such as Texas Hold'em, is not known either and what a player uses is the best he could come up with. However, this is usually good enough provided he is able to withstand drawdowns, to stay long enough in the game to accumulate enough winning hands not only to offset any losing hands that have happened to him, but also to produce profits.
Article Source: http://EzineArticles.com/2347422
No comments:
Post a Comment