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Trading Against Yourself

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COMMENT: Thank you for your monthly subscription, interviews, and blog. I have a monthly subscription to Socrates. I did do investments and made more than enough to pay my yearly dues, albeit with some stomach ache. Weekly might have been better than monthly, but my investment amounts are not at the institutional level.
Socrates doesn’t follow all stocks, and the bulk of my stocks were in a company that was not covered (MRVL). Based on the private blogs I sold out vested RSUs ahead of the panic cycle predicted which saved me at least 10x the cost of my subscription, maybe 50x, I don’t even know how to calculate it. I am very glad a friend recommended your site in 2018, it has more than saved me money, your daily blogs and private blogs have saved my sanity.


REPLY: It is important to understand that you are really trading against yourself. Emotions often get the upper hand. What I try to do is provide an understanding that no market moves only higher or low. There is always a move interspersed with reactions.

mother in law wife illusion

Markets are like this famous drawing. some people will see the old lady and others will see the young girl where what is the mouth of the old lady is a necklace for the young girl. Hence, there will be some who look at the market and see a buying opportunity and others who scream SELL!

The importance of Socrates is that it is NOT a human opinion. We all can be right, but we can also be wrong. The object is to eliminate the emotions to be able to trade objectively. That is the real goal. As I have said before, when I was going to open an office in Geneva, I was told to keep the US name since everyone used our firm regarding currency because the rise and fall of the dollar was just a trade – not political.

The key to Socrates is that there is also NO CONFLICT OF INTEREST. This is why we have so many institutions that rely on this service. You just can’t be taken seriously if you forecast gold and also sell it as an example. The joke back in the ’80s was Solomon Brothers put out forecasts on debt instruments and they were often seen selling on the floor against the very advice they were putting out. Sorry, I retired from management. Not interested in managing portfolios, I prefer to walk the beach for the twilight of my life. Socrates is I suppose in WOKE terms – “non-binary” when it comes to markets. That is also why we still have offices in China and we are not blocked there for the government knows Socrates is not political and it is not written with a human hand. Socrates is free of human emotions and prejudices. That is what counts.